Sony has created a new US-based company for its PlayStation business

Sony has created a new US-based company for its PlayStation business by merging Sony Computer Entertianment and Sony Network Entertainment, according to a press release.

The new business, Sony Interactive Entertainment, will be based in California and will be run by Andrew House, a long-time Sony executive who who helped launch the PlayStation.

The new business will establish offices in Toyko and London later on in 2016.

“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,” said House.

According to Bloomberg, Sony has forecasted game sales of around $14 billion (£9.8 billion) in the year ending March 2016, almost all of which comes from PlayStation titles.

However, the gaming landscape is changing. “Network and games have practically the same user base and off-line games are no longer the driving force of the market,” said Amir Anvarzadeh, a manager of Japanese equity sales at BGC Partners, in a research note emailed to Bloomberg. The new unit, Anvarzadeh said, will help weather this change.

The PlayStation has been one of Sony’s most successful products, selling over 35 million units since 2013. The Xbox, which is made by Microsoft, has sold around half that number.

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