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The story
Founded by Ken Kutaragi on Nov 15, 1993, in Tokyo.1
Sony Computer Entertainment founding, PlayStation release, and North American expansion (1993–2005)
Sony Computer Entertainment, Inc. (SCEI) was jointly established in Tokyo by Sony and its subsidiary Sony Music Entertainment Japan in 1993 to handle the company's ventures into the video game industry. The original PlayStation console was released on December 3, 1994, in Japan. The company's North American operations, Sony Computer Entertainment of America (SCEA), were originally established in May 1994 as a division of Sony Electronic Publishing. Located in Foster City, California, the North American office was originally headed by Steve Race. Sony Computer Entertainment Europe was founded in London, England, on January 6, 1995 as a unit of Sony Electronic Publishing Ltd, original development staff had little to no experience in the video game industry, with most of them being recent college graduates according to Next Generation magazine.
In the months prior to the release of the PlayStation in Western markets, the operations were restructured: All video game marketing from Sony Imagesoft was folded into SCEA in July 1995, with most affected employees transferred from Santa Monica to Foster City. On August 7, 1995, Race unexpectedly resigned and was named CEO of Spectrum HoloByte three days later. He was replaced by Sony Electronics veteran Martin Homlish. This proved to be the beginning of a run of exceptional managerial turnover. The PS console was released in the United States on September 9, 1995. As part of a worldwide restructuring at the beginning of 1997, the American and European divisions of SCE were both re-established as wholly owned subsidiaries of SCEI, with Sony Interactive Entertainment (formerly Sony Electronic Publishing) being folded as well to SCEI on January 6, 1997, with the game's copyrights and trademarks of franchises like Jet Moto and Twisted Metal being transferred from SIE to SCE. In 1998, Saeki Masatsuka was promoted to executive officer and executive vice president of the company.
In 1998, Sony Interactive Studios America, the development division, was spun off from SCEA, with the intent to became an autonomous and independent video game publisher and brand label for SCEA in a similar manner Psygnosis was operating from SCEE and the video game division of Sony Music Entertainment Japan operating from SCEI, and given its own marketing team, with SCEA handling distribution functions, after having its titles being published and marketed by SCEA and later on, SISA was renamed 989 Studios, and its sports label was renamed to 989 Sports.
In 1998, Sony Computer Entertainment America signed a deal with Disney Interactive to publish titles based on the films A Bug's Life and Tarzan exclusively on the PlayStation console. In 1999, ahead of the launch of the PlayStation 2, autonomous Sony-owned video game company Psygnosis was merged into Sony Computer Entertainment Europe, while in 2000, fellow Sony-owned video game label 989 Studios was merged into Sony Computer Entertainment America. Around the same time, the North American branch of Psygnosis was folded into SCEA and Midway Home Entertainment (a division of Midway Games) acquired the leftover titles on its PlayStation lineup, while SCEA is planning on to publish the PS2 titles inherited from Psygnosis. The sports division, 989 Sports, became SCEA Sports Studio in 2005.
The launch of the second PS console, the PlayStation 2 was released in Japan on March 4, 2000, and the U.S. on October 26, 2000. In May 2001, the SCEA/Disney deal was extended to include titles based on Atlantis: The Lost Empire, Monsters, Inc., Treasure Planet, Lilo & Stitch, and Peter Pan: Return to Never Land on the PlayStation and PlayStation 2. On July 1, 2002, chairman of SCEI, Shigeo Maruyama, was replaced by Tamotsu Iba as chairman. Jack Tretton and Phil Harrison were also promoted to senior vice presidents of SCE. In 2002, Sony Computer Entertainment Europe signed a deal with Bam! Entertainment to publish two Psygnosis-inherited titles WipeOut Fusion and Dropship in North America. In 2004, after the release of wordimagesoundplay, SME Japan's video game division was folded into SCEI. The PlayStation Portable (PSP) was SCEI's first foray into the small handheld console market. Its development was first announced during SCE's E3 conference in 2003, and it was officially unveiled during their E3 conference on May 11, 2004. The system was released in Japan on December 12, 2004, in North America on March 24, 2005, and in Europe and Australia on September 1, 2005.
Creation of SCE Worldwide Studios, acquisitions, and restructure (2005–2011)
On September 1, 2005, SCEI formed SCE Worldwide Studios, a single internal entity to oversee all wholly owned development studios within SCEI. It became responsible for the creative and strategic direction of development and production of all computer entertainment software by all SCEI-owned studios—all software is produced exclusively for the PS family of consoles. Shuhei Yoshida was named as president of Worldwide Studios on May 16, 2008, replacing Kazuo Hirai, who was serving interim after Harrison left the company in early 2008.
On December 8, 2005, video game developer Guerrilla Games, developers of the Killzone series, was acquired by Sony Computer Entertainment as part of Worldwide Studios. On January 24, 2006, video game developer Zipper Interactive, developers of the Socom series, was acquired by Sony Computer Entertainment as part of Worldwide Studios.
In March 2006, Sony announced the online network for its forthcoming PlayStation 3 (PS3) system at the 2006 PlayStation Business Briefing meeting in Tokyo, Japan, tentatively named "PlayStation Network Platform" and eventually called just PlayStation Network (PSN). Sony also stated that the service would always be connected, free, and include multiplayer support.
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The launch date for the PS3 was announced by Hirai at the pre-E3 conference held at the Sony Pictures Studios in Culver City, California, on May 8, 2006. The PS3 was released in Japan on November 11, 2006, and the U.S. date was November 17, 2006. The PSN was also launched in November 2006.
On November 30, 2006, president of SCEI, Ken Kutaragi, was appointed as chairman of SCEI, while Hirai, then president of SCEA, was promoted to president of SCEI. On April 26, 2007, Ken Kutaragi resigned from his position as chairman of SCEI and group CEO, passing on his duties to the recently appointed president of SCE, Hirai.
On September 20, 2007, video game developers Evolution Studios and Bigbig Studios, creators of the MotorStorm series, were acquired by Sony Computer Entertainment as part of Worldwide Studios.
On April 15, 2009, David Reeves, president and CEO of SCE Europe, announced his forthcoming resignation from his post. He had joined the company in 1995 and was appointed as chairman of SCEE in 2003, and then president in 2005. His role of president and CEO of SCEE would be taken over by Andrew House, who joined Sony Corporation in 1990. The PSP Go was released on October 1, 2009, for North America and Europe, and on November 1, 2009, for Japan.
On April 1, 2010, SCEI was restructured to bring together Sony's mobile electronics and personal computers divisions. The main Japanese division of SCEI was temporarily renamed "SNE Platform Inc." (SNEP) on April 1, 2010, and was split into two divisions that focused on different aspects: "Sony Computer Entertainment, Inc.", consisting of 1,300 employees who focused on the console business, and the network service business consisting of 60 to 70 employees. The network service business of SCEI was absorbed into Sony Corp's Network Products & Service Group (NPSG), which had already been headed by Hirai since April 2009. The original SCEI was then dissolved after the restructuring.
The North American and European branches of SCEI were affected by the restructuring, and remained as SCEA and SCEE. Hirai, by that time SCEI CEO and Sony Corporation EVP, led both departments. Also on the same date, Sony Network Entertainment International (SNEI) was founded with Tim Schaaff becoming its president. SNEI would be in charge of operating the PlayStation Network and would also offer the Media Go software.
On March 2, 2010, video game developer Media Molecule, developers of the PlayStation 3 game LittleBigPlanet, was acquired by SCEI as part of Worldwide Studios. On August 23, 2010, the headquarters of the company moved from Minami-Aoyama to the Sony City (Sony Corporation's headquarters) in Kōnan, Minato, Tokyo. On April 20, 2011, SNEI and SCEI were both the victim of an attack on its PlayStation Network system, which also affected its online division, Sony Online Entertainment. On August 1, 2011, video game developer Sucker Punch Productions, developers of the Sly Cooper and Infamous series, was also acquired.
Launch of PlayStation Vita and PlayStation 4, and SEN (2011–2016)
In August 2011, the Sony Entertainment Network was announced, offering music and video services as well as the PlayStation Network. From February 8, 2012, PSN accounts were converted into SEN accounts to be used with all services on offer by the Sony Entertainment Network.
In January 2012, BigBig Studios was closed and Cambridge Studio—renamed Guerrilla Cambridge—becoming a sister studio of Guerrilla Games. In March 2012, Zipper Interactive, developers of the SOCOM series, MAG and Unit 13, was closed. On June 25, 2012, Hirai retired as chairman of Sony Computer Entertainment; however, he remains on the board of directors.
On July 2, 2012, Sony Computer Entertainment acquired Gaikai, a cloud-based gaming service. In August 2012, Studio Liverpool, developer of the Wipeout and Formula One series, was closed. In August 2012, Sony Computer Entertainment announced PlayStation Mobile for Vita and PlayStation certified devices, with developers such as THQ, Team17 and Action Button Entertainment signed up.
On December 31, 2012, Tim Schaaff retired as president of Sony Network Entertainment International, but remained on the company's board. On April 2, 2013, Sony announced to merge Sony Computer Entertainment's Asian operations with its Japanese operations as Sony Computer Entertainment Japan Asia.
A press release was published on August 20, 2013, announcing the release date of the PlayStation 4 (PS4) console. On that date, SCEI introduced the CUH-1000A series system, and announced the launch date as November 15, 2013, for North American markets and November 29, 2013, for European, Australasian and Central and South American markets.
Following a January 2014 announcement by the Chinese government that the country's 14-year game console ban would be lifted, the PS4 was scheduled to be the first Sony video game console to be officially and legally released in China since the PlayStation 2.
On March 6, 2014, Sony Computer Entertainment of America President and CEO, Tretton, announced he was resigning from his position at the end of the month, citing a mutual agreement between himself and SCEA for the cessation of his contract. Tretton had worked at SCEA since 1995 and was a founding member of the company's executive team. He was involved in the launch of all PlayStation platforms in North America, including the original PlayStation, PS2, PSP, PS3, PSN, PS Vita, and PS4. Tretton was replaced by Shawn Layden, who was the vice-president and chief operating officer (COO) of Sony Network Entertainment International, effective April 1, 2014. On April 2, 2015, it was announced that Sony Computer Entertainment had acquired the intellectual property of the cloud gaming service OnLive, and that its services would cease by the end of the month.
In March 2015, Sony Network Entertainment International and Sony Computer Entertainment launched PlayStation Vue (PSVue) in the U.S., Sony's first-ever cloud-based television service. The beta version was only offered on an invite-only basis for PS3 and PS4 users from November 2014 prior to its official launch. Sony signed deals with major networks, including CBS, Discovery, Fox, and Viacom, so that users can view live streaming video, as well as catch up and on-demand content, from more than 75 channels, such as Comedy Central and Nickelodeon. Although pricing and release dates for other regions was not publicized, Sony confirmed that PSVue will eventually be available on iPad, followed by other Sony and non-Sony devices.
Restructuring as Sony Interactive Entertainment (2016–present)
On January 26, 2016, Sony announced the reorganization and integration of Sony Computer Entertainment (SCE) and Sony Network Entertainment International (SNEI), establishing a new company called Sony Interactive Entertainment LLC (SIE) on April 1, 2016, under the umbrella of Sony Corporation of America. Unlike the former SCE, SIE is headquartered in San Mateo, California — where SNEI was based at — and oversees the entire PlayStation brand, regional subsidiaries, and content business. SIE's Japanese branch, Sony Interactive Entertainment Inc, was established as a direct subsidiary of Sony Corporation. On March 24, 2016, Sony announced the establishment of ForwardWorks, a new studio dedicated to producing "full-fledged" games based on Sony intellectual properties for mobile platforms such as smartphones; it would later develop Disgaea RPG and is currently supporting Everybody's Golf on Android and iOS. ForwardWorks was later moved to another division within Sony becoming a subsidiary to Sony Music and therefore no longer a unit within Sony Interactive Entertainment.
It was reported in December 2016 by multiple news outlets that Sony was considering restructuring its U.S. operations by merging its TV and film business with SIE. According to the reports, such a restructuring would have placed Sony Pictures under Sony Interactive's CEO, Andrew House, though House would not have taken over day-to-day operations of the film studio. According to one report, Sony was set to make a final decision on the possibility of the merger of the TV, film, and gaming businesses by the end of its fiscal year in March of the following year (2017). However, judging by Sony's activity in 2017, the rumored merger never materialized.
On January 8, 2019, Sony announced that the company had entered into a definitive agreement for Sony Interactive Entertainment to acquire Audiokinetic.
On March 20, 2019, Sony Interactive Entertainment launched the educational video game platform toio in Japan.
On May 20, 2019, Sony Interactive Entertainment announced that the company had launched PlayStation Productions, a production studio that adapts the company's extensive catalogue of video game titles for film and television. The new venture is headed by Asad Qizilbash and overseen by Shawn Layden, chairman of Worldwide Studios.
On August 19, 2019, Sony Interactive Entertainment announced that the company had entered into definitive agreements to acquire Insomniac Games. The acquisition was completed on November 15, 2019, where Sony paid ¥24,895 million (US$229 million) in cash.
On November 8, 2019, Gobind Singh Deo, Malaysia's Minister of Communications and Multimedia, announced that Sony Interactive Entertainment would open a new development office in the country as in 2020 to provide art and animation as part of Worldwide Studios' efforts to make exclusive games for PlayStation consoles. The studio will be Sony Interactive Entertainment's first studio in Southeast Asia.
SIE announced the formation of PlayStation Studios in May 2020 to be formally introduced alongside the PlayStation 5 later in 2020. PlayStation Studios will serve as an umbrella organization for its first-party game development studios, including Naughty Dog, Insomniac, Santa Monica Studio, Media Molecule and Guerrilla Games, as well as used for branding on games developed by studios brought in by Sony in work-for-hire situations. Sony plans to use the "PlayStation Studios" branding on both PlayStation 5 and new PlayStation 4 games to help with consumer recognition, though the branding was not ready for some of Sony's mid-2020 releases like The Last of Us Part II.
SIE's parent Sony bought a minority stake in Epic Games for $250 million in July 2020, giving the company about a 1.4% stake in Epic. The investment came after Sony helped with Epic's development of new technologies in its Unreal Engine 5, which it was positioning for use in powering games on the upcoming PlayStation 5 to take advantage of its high speed internal storage solutions for in-game streaming.
In March 2021, SIE announced that it and RTS acquired the assets and properties of the Evolution Championship Series as a joint venture.
On April 13, 2021, Epic Games announced that it received an additional $200 million strategic investment from SIE's parent Sony Group Corporation.
On May 3, 2021, Sony Interactive Entertainment announced the acquisition of a minority stake in Discord, which would be integrated into the PlayStation Network by early 2022.
On June 29, 2021, Sony Interactive Entertainment announced the acquisition of Housemarque.
On July 1, 2021, Sony Interactive Entertainment announced the acquisition of Nixxes Software. Jim Ryan said later that month that they plan to work with Nixxes to release more of their PlayStation games to personal computers.
On September 8, 2021, Sony Interactive Entertainment announced the acquisition of Firesprite, a Liverpool-based developer with over 250 employees. The studio has multiple projects in development, with the projects focusing on genres outside the core offerings of PlayStation Studios. On September 29, 2021, Firesprite announced that it had acquired Fabrik Games, bringing the studio's headcount to 265.
On September 30, 2021, Sony Interactive Entertainment announced that Bluepoint Games had joined PlayStation Studios, with Bluepoint working on original content instead of remaking an older game.
On November 4, 2021, Sony Interactive Entertainment acquired a 5% stake in the video game publisher Devolver Digital.
On December 10, 2021, Sony Interactive Entertainment announced the acquisition of the Seattle-based studio Valkyrie Entertainment.
Sony Interactive Entertainment announced its intent to purchase Bungie for $3.6 billion in January 2022. This deal closed on July 15, 2022. Under terms of this deal, Bungie remained an independent development studio and publisher, allowing Bungie to pursue development outside Sony's platforms, and was intended to help bolster live service games for SIE.
Sony Interactive Entertainment acquired Jade Raymond's Haven Studios in March 2022 and incorporating it as part of PlayStation Studios, making the studio Sony's first development team in Canada.
On July 18, 2022, Sony Interactive Entertainment and Repeat.gg announced that Sony Interactive Entertainment had acquired Repeat.gg.
On August 29, 2022, Sony Interactive Entertainment announced that it had acquired Savage Game Studios, a mobile game development studio with offices in Helsinki and Berlin. Savage Game Studios joined the newly created PlayStation Studios Mobile Division, an independent operation from console development.
On August 31, 2022, it was announced that Sony Interactive Entertainment has acquired a 14.09% stake in FromSoftware.
On April 20, 2023, Sony Interactive Entertainment announced that it had acquired Firewalk Studios from ProbablyMonster.
On August 24, 2023, Sony Interactive Entertainment announced it had acquired audio company Audeze, who makes gaming headphones.
On November 2, 2023, Sony Interactive Entertainment announced that it would acquire UK-based iSize, a company which specializes in building AI-powered solutions to improve video delivery.
From Wikipedia’s article on Sony Interactive Entertainment, shared under CC BY-SA 4.0.5