As discussed earlier..divisions are being marshalled into two new umbrella groups, but they remain as indivdual divisions, they're not being 'eliminated'. As the PR states, Kaz is still President and Group CEO of SCE in addition to his new role. If they were merging divisions that would seem unnecessary.
And actually, politically within Sony this is good news for SCE. PSN 'won' in terms of the competing network strategies within Sony, and Stringer's basically forcing the other divisions to fall under its banner. Kaz is also being promoted to Executive Vice President at Sony overall, which increases his influence further.