San Diego-based Sony Online Entertainment (SOE), part of Sony Pictures Entertainment, has always operated separately from the rest of the folks at Sony Computer Entertainment (SCE). That's set to change, however, as the two companies announced today a restructuring that will see SOE and President John Smedley report to Kazuo Hirai, President and Group CEO, SCEI, effective April 1, 2008.

This strategic move is "designed to mutually benefit both companies by further accelerating the PlayStation business through SOE's strong online gaming expertise."

"I am excited to be able to work with SOE even more closely, as online games and services become a more integral part of the PS3 entertainment experience," 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."

"We are thrilled to become a part of the incredible team that has made PlayStation 3 the premier platform for next generation online gaming," said Smedley. "This move is going to broaden our capabilities and expand the development of our products into new and exciting directions."