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Sony Is Relocating Its Entire PlayStation Business to California

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People visit the Playstation stand on October 28, 2015 at Paris Game Week, a trade fair for video games in Paris.Photograph by Patrick Kovarik—AFP via Getty Images

Sony plans to create a new company to house its PlayStation video games division, the company said Tuesday.

The Japanese conglomerate said it will merge two of its entertainment businesses—Tokyo-based Sony Computer Entertainment and San Mateo, Calif.-based Sony Network Entertainment International—into one company beginning April 1.

The new business will relocate headquarters to the United States, and will be named Sony Interactive Entertainment. The move reflects the importance of the ever-expanding American market to the gaming industry.

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Andrew House, president and CEO of Sony Computer Entertainment, will lead the new company. “By integrating the strengths of PlayStation’s hardware, software, content and network operations, SIE will become an even stronger entity, with a clear objective to further accelerate the growth of the PlayStation business,” he said in a statement.

Shawn Layden, president and CEO of Sony Computer Entertainment America, echoed House’s words in a post on his company’s blog. (According to an organizational chart accompany the release, it appears as though Layden will lose the chief exec title and take over the new unit’s game development studios.)

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“The formation of SIE will create an even stronger PlayStation,” Layden said. “That means an even bigger emphasis on developing pioneering platforms like PS4 and PlayStation VR, world-class games from our World Wide Studios development teams, and innovative network services such as PlayStation Vue.”

Gaming remains a lucrative segment for Sony, especially after an immensely successful holiday season. The company continues to outpace gaming console rivals Microsoft (MSFT) and Nintendo.