Sony Interactive Entertainment (SIE) announced on Tuesday that it will lay off about 900 employees, or 8% of its global workforce, in its PlayStation division. The move is part of a major restructuring that will affect several of its studios, including Naughty Dog, Insomniac, and Guerrilla. Sony also confirmed that it will close its London Studio, which was responsible for developing VR games such as Blood & Truth and The London Heist.
Why Sony is Cutting Jobs and Closing Studios
Sony said that the layoffs and studio closure are necessary to adapt to the changes in the gaming industry and to deliver on the expectations of developers and gamers. In a blog post, SIE CEO Jim Ryan explained that the company needs to be agile and adaptable, and to focus on delivering the best gaming experiences possible.
Sony Shakes Up PlayStation Studios With 900 Layoffs and Studio Closure
Ryan said that the decision was not easy, and that the company will provide severance benefits and career support to the affected employees. He also thanked them for their contributions and dedication to PlayStation.
Sony is not the only gaming company to announce layoffs in recent months. Microsoft, Activision Blizzard, and Riot Games have also cut jobs as part of their restructuring plans. The gaming industry is facing challenges such as rising development costs, increased competition, and changing consumer preferences.
How the Layoffs Will Impact PlayStation Studios
The layoffs will impact some of the most prominent and successful studios under PlayStation Studios, the umbrella brand for Sony’s first-party game development. These include:
Naughty Dog, the developer of critically acclaimed franchises such as The Last of Us, Uncharted, and Jak and Daxter. The studio is currently working on The Last of Us Part III, a sequel to the 2020 game of the year winner.
Insomniac, the developer of popular games such as Spider-Man, Ratchet & Clank, and Resistance. The studio is currently working on Spider-Man 2, a sequel to the 2018 blockbuster hit.
Guerrilla, the developer of award-winning games such as Horizon Zero Dawn, Killzone, and Shellshock. The studio is currently working on Horizon Forbidden West, a sequel to the 2017 best-selling game.
Sony did not specify how many employees will be laid off from each studio, or how the layoffs will affect the development of their upcoming games. However, some industry analysts and insiders have expressed concerns that the layoffs could result in delays, quality issues, or cancellations of some of the most anticipated PlayStation exclusives.
What the Future Holds for PlayStation
Despite the layoffs and studio closure, Sony remains confident in the future of PlayStation. Ryan said that the company has a strong lineup of games for 2024 and beyond, and that it will continue to invest in new technologies and innovations for gaming.
Sony also said that it will explore new opportunities and partnerships with other studios and publishers, both within and outside the PlayStation ecosystem. For example, Sony recently acquired Firesprite, a UK-based studio that specializes in VR and cloud gaming. Sony also partnered with Deviation Games, a new studio founded by former Treyarch veterans, to create a new original IP for PlayStation.
Sony is also facing fierce competition from its rivals, such as Microsoft, Nintendo, and Google. Microsoft has been aggressively expanding its Xbox Game Studios portfolio, acquiring major studios such as Bethesda, Obsidian, and Ninja Theory. Nintendo has been dominating the handheld market with its Switch console, which has sold over 100 million units worldwide. Google has been experimenting with cloud gaming with its Stadia platform, which allows users to stream games on any device.
Sony will have to prove that it can still deliver high-quality and exclusive games that appeal to its loyal fan base, as well as attract new and casual gamers. The company will also have to keep up with the evolving trends and demands of the gaming industry, such as cross-play, subscription services, and social features.
