In a move to demonstrate its renewed focus on network business, Sony Corp. will rename its group headquarters "eHQ" -- short for e-headquarters -- effective Saturday, President Nobuyuki Idei announced Thursday.
The eHQ will take over the present headquarters' tasks, formulating overall strategy for the Sony group and promoting the development of net business. The move, however, may lead to the realignment of the group, with the eHQ transformed into a holding company, Idei said.
As part of a strategy to promote e-business, the Sony group will place priority on the promotion of the So-net business, an Internet provider business operated by Sony Communication Network Corp., and PlayStation.com. (Japan) Inc., an online sales arm of Sony Computer Entertainment Inc.
While developing the So-net business globally, possibly through such measures as mergers and alliances, Sony is considering an initial public offering of SCN, Idei said. SCN currently has about 1.2 million members of its Internet provider service.
Idei also said that Sony will set up Sony Broadband Entertainment Inc. in the United States, a holding firm that will have Sony Pictures Entertainment Inc. and Sony Music Entertainment Inc. under its wing.
The move aims to reinforce its contents business in view of the coming broadband network era, integrating music and movies providing businesses -- currently operated by separate firms -- under the single holding firm, Idei said.
Meanwhile, SCE President Ken Kutaragi said his firm estimates demand for PlayStation2, a blockbuster video game console, in fiscal 2000 at 10 million units worldwide.
Of the total, four million units are for the domestic market and three million units are for each of the North American and European market.
Since SCE launched the video game console on March 4, SCE has shipped nearly 1.4 million units, including some 500,000 units via the Internet, Kutaragi said.
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