Sony Announces Significant Job Cuts and Studio Closures

Ahmad Bagheri
News، PlayStation May 29, 2024, 3:08 am

PlayStation’s boss, Jim Ryan, surprised the gaming world, saying goodbye to 900 jobs and terminating up to 8% of the PlayStation family. Not even the popular companies like Naughty Dog, Insomniac, and Guerrilla Games got a pass. The London studio is also shutting its doors after a good 22-year run.

Ryan tried to soften the blow by saying thanks to the departing crew but blaming it on the gaming industry’s crazy changes. He talked about needing to be updated as a company and stay on top of the game for all the developers and gamers out there.

Unfortunately, it’s not just about decreasing the workforce; they’re also shutting down some studios. Even Insomniac did not survive the layoffs, especially after cancelling The Last of Us multiplayer spin-off.

Herman Hulst, the head of PlayStation Studios, chimed in, talking about how they’re rethinking their game-making and publishing game plan. He hinted at some canceled projects and acknowledged that hitting the high-quality gaming bar they aim for means having to make some changes.

The fact is that Sony’s recent purchases of new studios and IPs, plus diving into PC and mobile gaming, caused them to take a step back. They decided to pull the plug on some projects in the pipeline.

What is happening in the industry?

This news follows a trend in the gaming world. Several major players have announced significant layoffs, leaving hundreds of employees without jobs. For instance studios like Supermassive Games, the developer behind Until Dawn, had to hand out layoffs too.

The renowned game engine company, Unity, faced financial challenges and had to make tough decisions. They initiated two rounds of layoffs, affecting a total of 900 employees. The impact reverberated across the industry, as Unity plays a crucial role in game development .

Epic Games, The creators of Fortnite and Unreal Engine were not immune to the industry’s struggles. Epic Games recently laid off 830 employees, constituting approximately 16% of their workforce. The move came as a shock to many, given the company’s prominence.

A major competitor to PlayStation, Microsoft Gaming announced a significant reduction in its workforce. Approximately 1,900 employees were affected by the layoffs. The move underscores the industry-wide impact of changing market dynamics and shifting priorities.

Over 7,500 gaming jobs vanished in thin air in just two months. The future for the industry looks grim as more and more talented people are losing their jobs.

 

What do you think about all of this?

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