In a strategic move to closely align itself with the strong growth of the worldwide online gaming market, Sony Computer Entertainment announced Thursday that Sony Online Entertainment will report to Kazuo Hirai, President and Group CEO, SCEI, effective April 1, 2008.

The new structure is designed to mutually benefit both companies by further accelerating the PlayStation business through SOE's strong online gaming expertise.

San Diego-based SOE is currently part of Sony Pictures Entertainment.

Under the new structure, SOE will continue to develop its games for the PC and the PLAYSTATION3 computer entertainment system, and SOE President John Smedley will report to Hirai.

Hirai said, "This new structure will allow us to take full advantage of the extensive breadth of expertise of the two companies and increase our range of exciting entertainment offerings to our consumers."

Sony Online Entertainment is a recognized worldwide leader in massively multiplayer online games, with hundreds of thousands of subscribers around the globe.

Sony Computer Entertainment manufacturers, distributes and markets the PlayStation game console, the PlayStation2 computer entertainment system, the PSP (PlayStation Portable) handheld entertainment system and the PLAYSTATION3.