Sony moving all PlayStation operations to San Mateo
By
George Avalos |
gavalos@bayareanewsgroup.com | Bay Area News Group
January 26, 2016 at 12:08 pm
SAN MATEO — Sony said Tuesday it will move all of its PlayStation-related operations to San Mateo, enabling the consumer electronics giant to tap the talent of Silicon Valley, and potentially bringing new jobs to the Bay Area.
Japan-based Sony announced the creation of a new company, Sony Interactive Entertainment, that will be based in San Mateo.
The market environments of hardware, software, content and network services are ever evolving, making it crucial for Sony Computer Entertainment and Sony Network Entertainment to unify their business strengths under one entity with a single focus, the company said.
“Strategically, it makes a great deal of sense to have the merging of these two operations,” said Tim Bajarin, principal analyst with Campbell-based Creative Strategies.
The move will help Sony intensify its focus on Web-based game services and streaming.
At present, Sony has about 1,300 employees at its San Mateo site, said Jennifer Clark, a spokeswoman for Sony PlayStation. The office complex totals 450,000 square feet, she added.
The Sony PlayStation platform has evolved rapidly from a stand-alone console to a networked and cloud-based system that enables streaming of games, movies, videos and other content.
“Sony’s decision is testament to the economic pull of the Bay Area,” said Scott Anderson, chief economist with San Francisco-based Bank of the West. “They are looking for the synergy of talent that is located in Silicon Valley and the innovation culture that is here.
Besides consumer electronics companies, cellphone firms as well as automotive companies have sought to establish major outposts in Santa Clara County or San Mateo County in a quest to be near the engineering, software, mobile technologies, hardware and Internet talent located in the region.
Sony’s consolidation in San Mateo won’t lead to a shrinking of the entertainment giant’s workforce. “We will continue to hire at this location and across other regions,” Clark said. “There is a possibility that a small number of staff will move to the U.S.”