Another sombre day unfolds in the gaming industry as news of significant layoffs hits PlayStation. Sony Interactive Entertainment (SIE) has announced plans to reduce its workforce in the PlayStation division by approximately 900 employees, constituting about 8 percent of the department’s total staff.
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Well-known studios like Insomniac (creators of Spider-Man and Ratchet and Clank), Naughty Dog (renowned for The Last of Us), and Guerrilla (developers of Horizon) are among those affected by the downsizing. These studios are responsible for some of PlayStation’s most iconic franchises. For instance, Marvel’s Spider-Man 2 managed to sell an impressive 10 million units within just three and a half months of its release.
Furthermore, Sony’s London Studio, previously working on a co-op multiplayer game for PlayStation 5, is being shut down entirely, while Firesprite will also experience layoffs. Additionally, PlayStation will be reducing its workforce across its Technology, Creative, and Support teams.
Affected PlayStation employees in the US will receive notifications today, with Sony committing to comply with local labour laws and regulations in other regions where layoffs will occur.
In an internal email, outgoing SIE president and CEO Jim Ryan emphasized the need for changes to sustain the company’s growth and development. He stressed the importance of streamlining resources to ensure long-term success and deliver exceptional experiences to the gaming community.
Meanwhile, Hermen Hulst, head of PlayStation Studios, mentioned that the leadership team evaluated ongoing projects across their studios and portfolio, leading to the cancellation of several projects at various stages of development. Hulst highlighted the company’s commitment to creative experimentation while acknowledging that not all projects reach fruition due to shifts in the market or industry landscape.
Sony is also re-evaluating its approach to game development, considering the balance between blockbuster single-player experiences and long-tail multiplayer games. Hulst emphasized the need to deliver immersive, narrative-driven stories while also exploring social, online experiences and expanding to additional platforms such as PC and mobile.
The recent layoffs add to the significant job losses in the gaming industry this year, with more than 7,000 positions affected so far. This trend follows widespread cuts in various gaming companies, including Microsoft, Riot Games, Unity, Twitch, Supermassive Games, Behaviour Interactive, and Sega of America, among others.
