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In September, Shanda Interactive spun off its gaming unit, Shanda Games, to expand overseas.
"We want to build controllers you can't even begin to imagine could exist," Kazuo Hirai, head of Sony's gaming unit, said at the Game Show.
In Sony's gaming unit, lower production costs for the PlayStation 3 game console and higher unit sales of software like the latest game in its popular Gran Turismo car racing series helped increase profit.
Selling the Xbox gaming unit could bring in some extra capital.
Also, Shanda's gaming unit has been strong, but its growth has lagged that of Chinese competitors like Tencent.
As much as 77 percent of Shanda Interactive's revenue now comes from the gaming unit, according to Morgan Stanley.
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So one thing I've noticed when looking at the accessory packs for handheld gaming units, is that they usually have a bunch of crap you don't need.
Last year he jettisoned a popular "social gaming" (think Farmville-type games) unit called Big Fish, which Churchill Downs had acquired for just shy of a billion dollars only three years ago.
The head of Microsofts games unit is trying to lure hotshot gaming programmers to Redmond, Wash., perceived by some in the gaming industry as a land of khaki pants, button-down denim shirts and stifled innovation.
Mr. Hirai, who has been chief executive of the video game unit since December 2006, will continue to oversee the gaming business as the unit's chairman, Sony said.
But Rahul Sood, chief technology officer for Hewlett-Packard's global gaming business unit, said new products would be ready later this year.
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