In reality, the exact opposite happened. Ken Kutaragi (creator of the PlayStation) and Norio Ohga (then-president of Sony) were outraged that the Sony executives in America were not following their instructions, and they fired the vast majority of them. This is discussed at length in the book Revolutions at Sony by Reiji Asakura. The American side wanted to make all kinds of changes - they hated the name PlayStation, they hated the grey color (they wanted it to be black), and they hated that Kutaragi would not let them include a pack-in title for free with each console. The Japanese side quickly responded, fired most of them, and took direct control.