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Journey of Sony Interactive Entertainment in the gaming market

Case Study Jun 26, 2022

Sony is not a new name to any of us. Having been in different industries for a long time now, Sony has become a home name to everyone. This initial successful phase was the reason behind the establishment of Sony Interactive Entertainment. In this blog, we'll take a look at the journey of Sony Interactive Entertainment and how it became SIE from Sony Computer Entertainment (SCE).


Sony Interactive Entertainment (SIE), formerly known as Sony Computer Entertainment (SCE), is a multinational video game and digital entertainment company wholly owned by the Japanese multinational conglomerate Sony.

The SIE Group is made up of two legal corporate entities: Sony Interactive Entertainment LLC (SIE LLC) based in San Mateo, California, United States, and Sony Interactive Entertainment Inc. (SIE Inc.), based in Minato, Tokyo, Japan. Tokyo-based SIE Inc. was originally founded as Sony Computer Entertainment Inc. (SCEI or SCE) in November 1993 to handle Sony's venture into video game development for the PlayStation systems. Since the launch of the original PlayStation console in 1994, the company has been developing PlayStation home video game consoles, accessories, and services.

Since the launch of the original PlayStation console in 1994, the company has been developing PlayStation home video game consoles, accessories, and services. In April 2016, SCE and Sony Network Entertainment International were restructured and reorganized into Sony Interactive Entertainment, carrying over the operations and primary objectives of both companies. The same year, SIE LLC was established, with its headquarters in San Mateo, California.

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The establishment of SIE

Sony Computer Entertainment, Inc. (SCEI) was jointly established 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.

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.

SIE announced the formation of PlayStation Studios in May 2020 to be formally introduced alongside the PlayStation 5 later in 2020. On March 21, 2022, it was announced that Sony Interactive Entertainment would acquire Jade Raymond's Haven Studios, making the studio Sony's first development team in Canada.

Games by Sony Interactive Entertainment

Sony Interactive Entertainment is a subsidiary of the Sony Corporation responsible for Research & Development, production, and sales of hardware and software for the PlayStation line of handheld and video game consoles.

Here's a list of games published by SIE:

- Demon's Souls: Demon's Soul for the PlayStation 5 is a full remake of the original PlayStation 3 release of the game, which launched in 2009.

Credits to playstation

- Shenmue III: Shenmue III is the long-awaited third installment of the Shenmue franchise. Continuing from where Shenmue II left off, protagonist Ryo Hazuki travels to Guilin China in order to trace his father's murderer, shadowy Triad boss Lan Di.

- Death Stranding: Death Stranding is a sci-fi third-person open-world action-adventure game developed by Kojima Productions and released by Sony for the PlayStation 4 on November 8, 2019.

- Gran Turismo 7: After the online multiplayer focus of Gran Turismo Sport, Gran Turismo 7 marks the return of both career mode and car customization.

- Uncharted: Legacy of Thieves- The Collection is a remastered compilation of Uncharted 4: A Thief's End and Uncharted: The Lost Legacy. The game is developed by Naughty Dog. Inc. and published by PlayStation Studios and Sony Interactive Entertainment America for PlayStation 5. A PC release was also ported by Iron Galaxy Studios.

How is Sony Interactive Entertainment still thriving in the Gaming Market?

Game consoles had been around for a while. During the ’80s, Atari and Nintendo dominated the industry and during the first years of the ’90s, Nintendo and Sega were the key players. But it was not until Sony’s entrance into the space that the real gaming war started. Let's take a look at some of the strategies Sony adapted to make its mark in the Gaming Market:

- In December 1994, Sony released the first PlayStation console, when the industry didn’t even consider Sony as a legitimate rival. They were to compete with the “fifth generation” of consoles, having as main rivals the Nintendo 64 and the Sega Saturn.

- Some of the key differences of the PlayStation were that it processed games stored on CD-ROMs and it introduced 3D graphics to the industry.

- From the beginning, Sony understood the key importance of indirect network effects in the gaming industry and was very smart in taking advantage of them.

- Sony’s management was incredibly cunning in identifying its competitors’ weaknesses and developing its products to take advantage of the network effects present in the gaming industry.

Sony has been a strong competitor in the market and the above-mentioned reasons point out why. We hope this blog provided you a clear picture of how Sony Interactive Entertainment was established and how it grew in all these years.

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