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Dryden said:
This is confusing, because the report cited by the OP contradicts other reports. David Reeves is quoted by other sources as saying that the SCE cuts will not include SCEE (Sony Computer Entertainment Europe), but that SCE cuts will happen elsewhere.

 

From the same article -

Sony Computer Entertainment has told GamesIndustry.biz that the cost cutting measures announced by Sony Corporation today are least likely to affect the games departments.