SCE Becomes Wholly Owned Unit

Sony representatives have indicated that the company will make its video games subsidiary, Sony Computer Entertainment (SCE), a wholly owned unit on April 1 through an equity swap. The swap deal will involve the issuance of 1 million Sony shares to Ken Kutaragi, president of SCE, in exchange for his 0.26% stake in SCE. This will give Kutaragi assets worth about ¥3.8 billion ($34.7m). Sony owns the remaining 99.74% stake in SCE. The company has said its decision to make SCE a wholly owned subsidiary is intended to help create new markets and bolster the development of semiconductors by combining electronics and game technologies.