Sony recently announced that it is spinning of its PlayStation business on April 1. With the spin, all PlayStation related brands and products will be housed under a separate company called Sony Interactive Entertainment LLC.

The new company will combine Sony Computer Entertainment, the arm that deals will all PlayStation-related software and hardware, and Sony Network Entertainment, the arms that deals with services like PlayStation Store and PlayStation Vue.

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Leading the soon to be established Sony Interactive Entertainment is Andrew House. He will take the title as President and Global Chief Executive of the newly formed company. On the other hand, Head of worldwide studios Shuhei Yoshida will still remain at his post, but due to the management restructuring, he will now report to Shawn Layden.

In a statement acquired by Engadget, Sony said, "Retain and expand PlayStation user engagement, increase Average Revenue Per Paying Users and drive ancillary revenue. SIE (Sony Interactive Entertainment) will vigorously expand the PlayStation business by delivering an integrated experience built around the best-in-class games and network services to consumers worldwide."

Many analysts believe that the spin will not affect how PlayStation and its connected services work. On a business perspective, Sony is just easing up on paperwork.

Sony Interactive Entertainment will have its headquarters in San Mateo, California. The newly formed company was given $2 million in working capital and will open its doors on April 1.

Judging from the company's opening date, some gamers thought it was Sony's way of trolling its customers or just a plain April Fool's joke. However, the decision is actually in writing and it is not a joke.

Sony has been in some financial constraints recently. The company sold its VAIO computers brand while its mobile division is still struggling to make an impact on the market.

Market analysts said that Sony cameras, including both standalone models and those integrated on smartphones, as well as its PlayStation division have helped the company afloat throughout these dark financial times.

According to PC Mag, the Sony PlayStation 4 is one of the company's most popular product. The console recorded 30 million sales in November 2015 after just two years on the market.