Sony will reposition PlayStation Home as a hub for social games, VentureBeat reports.
The process will be led by a redesign this autumn, which will introduce new features and areas to help users find games and facilitate play.
"This is a giant leap in the evolution of the platform," said PlayStation Home director Jack Buser. "We are going to 'up level' games as the heart of PlayStation Home. This means that Home itself is going to become a game. The first things you see when you get into Home are games."
When it launched in 2008 Home was positioned as a virtual world, but the rise of social networks and social games since then has prompted Sony to rethink its strategy.
The central plaza will be replaced by an area called The Hub, where users can check an activity board to for missions in MMO-style "meta-games" that take place within Home. Users will also be able to create custom events for their social groups.
Outside of The Hub, Home will now have themed areas for different game styles and genres. These will include Sportswalk, the Adventure District, and the Action District.
Sony will also update its core client to provide a more streamlined experience, with separate tracks for new, returning and regular users.
Buser claims that 23 million PlayStation 3 owners are currently registered in Home, with the average visit lasting around 70 minutes.