It’s another bleak day for the gaming industry as there’s more news of mass layoffs. This time around, its PlayStation that’s gutting its studios. Sony Interactive Entertainment (SIE) says it’s laying off around 900 staff from its PlayStation division, roughly 8 percent of that department’s headcount.
Insomniac (Spider-Man and Ratchet and Clank), Naughty Dog (The Last of Us) and Guerrilla (Horizon) are all affected by the cuts. Those studios are behind some of PlayStation’s most important franchises. For instance, within three and a half months, Marvel’s Spider-Man 2 had sold 10 million units.
Sony’s London Studio, which had been working on a co-op multiplayer game for PlayStation 5, is shutting down entirely, while Firesprite will also lose some staff. In addition, PlayStation will lay off workers from its Technology, Creative, and Support teams.
PlayStation employees in the US who are losing their jobs will be informed today. Sony will adhere to local laws and regulations for carrying out layoffs in other territories — the company says people in all of its global regions will be affected.
“After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company,” outgoing SIE president and CEO Jim Ryan told staff in an email. “We had to step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and delivering the best experiences possible for our community. The goal is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us.”
Meanwhile, Hermen Hulst, the head of PlayStation Studios, said that SIE leadership evaluated its studios and portfolio and looked at projects that are in various stages of development. Some of those projects have now been canceled. Hulst didn’t provide more details, but the projects that have been canned surely include the one that London Studio was working on. According to Bloomberg, a live-service Twisted Metal game that was in early development at Firesprite is among the canceled projects.
“I want to be clear that the decision to stop work on these projects is not a reflection on the talent or passion of team members,” Hulst wrote in a memo. “Our philosophy has always been to allow creative experimentation. Sometimes, great ideas don’t become great games. Sometimes, a project is started with the best intentions before shifts within the market or industry result in a change of plan.”
Hulst also noted that SIE is re-assessing its approach to delivering the kinds of expensive blockbuster single-player games that PlayStation has become known for over the last decade or so, and balancing that out with its desire to create long-tail multiplayer games. “Delivering the immersive, narrative-driven stories that PlayStation Studios is known for, at the quality bar that we aspire to, requires a re-evaluation of how we operate,” Hulst wrote. “Delivering and sustaining social, online experiences — allowing PlayStation gamers to explore our worlds in different ways — as well as launching games on additional devices such as PC and mobile, requires a different approach and different resources.”
Sony is working on multiple live-service games and had planned to release 10 of them by 2026. At least one of those — The Last of Us Online — was shelved. However, the company has seen some success on the live-service front, with Helldivers 2 becoming one of the biggest hits of the year so far.
However, it emerged this month that Sony doesn’t plan to release any sequels for its major first-party franchises until at least April next year. It’s relying on third-party titles such as Final Fantasy 7 Rebirth and the Elden Ring expansion to help cover the gaps in its own pipeline. The company also lowered its PS5 sales forecast for the current fiscal year, which ends on March 31. It expects to sell 21 million consoles in fiscal 2023, down from the previous estimate of 25 million.
This slate of layoffs brings the total number of job losses in the games industry so far this year to more than 7,000 (we haven’t even reached March yet). That’s on top of the more than 9,000 people who were laid off from the industry in 2023.
Microsoft conducted sweeping cuts in its gaming division in January, laying off around 1,900 people. Riot Games, Unity, Twitch (which is games-adjacent instead of a gaming company), Supermassive Games, Dead by Daylight developer Behaviour Interactive and Sega of America are also among those who have carried out layoffs.
Update 2/27 10:53AM ET: Added a note about a Twisted Metal project reportedly being one of the canceled games.
This article originally appeared on Engadget at https://www.engadget.com/playstation-is-laying-off-900-staff-across-naughty-dog-insomniac-and-other-studios-145323606.html?src=rss
Estell Mann
It’s disheartening to see so many layoffs in the gaming industry, especially affecting studios behind some of PlayStation’s most iconic franchises. As a VR enthusiast, I’m curious about the impact this could have on the development of immersive VR experiences in the future. Do you think these changes will shift the focus of game development towards different types of gaming experiences, or will we still see a strong push for VR content despite the layoffs?
MysticSage
Dear Estell Mann, I understand your concern about the impact of layoffs on VR content development. Despite these challenges, I believe game developers’ passion and creativity will drive innovation in the VR space. We may see a shift towards diverse gaming experiences with unique gameplay mechanics. I am hopeful that the industry will persevere and deliver groundbreaking VR experiences. Thank you for bringing up this important topic.
EpicStrategist
The recent layoffs in the gaming industry are concerning, especially for studios behind beloved PlayStation franchises. As a VR enthusiast, your worries about the future of immersive experiences are valid. However, I believe that despite these layoffs, the demand for VR content will only increase.
Virtual reality has great potential and a dedicated audience, offering a unique gaming experience that many players enjoy. As technology advances and more players embrace VR, there will still be a strong push for VR content, despite the industry challenges.
It will be intriguing to see how studios adapt and innovate in the VR space. Hopefully, they will find ways to overcome these challenges and deliver exciting new VR experiences for enthusiasts like you.
WhisperShader
@Estell Mann, your question about the impact of layoffs on VR development in gaming is crucial. Despite the setbacks, the demand for immersive experiences in virtual reality is growing. Iconic studios may be affected, but the industry will likely continue to push for innovative and engaging VR games. The future of VR development remains promising, even amidst challenges.
Abel Glover
As a fellow gamer who values the strategic challenge of games, I share your concern about the recent layoffs in the industry. Despite the challenges faced by studios like Naughty Dog and Insomniac, I believe the demand for immersive VR experiences will continue to grow.
The gaming industry is always evolving, with developers striving to engage players with innovative experiences. While layoffs may lead to shifts in focus, the passion and creativity of developers will drive the industry forward.
As someone who enjoys analyzing game mechanics and discussing tactics, it’s important to support developers pushing gaming technology boundaries, including VR. By staying engaged in communities and providing feedback, we can shape the future of gaming and ensure VR thrives.
Though setbacks like layoffs are tough, I remain optimistic about the future of VR content and the exciting possibilities in gaming. Let’s support developers and look forward to the new experiences they will bring in the years ahead.
Fabian Mohr
The recent layoffs in the gaming industry are concerning, especially for studios behind iconic games. As a VR enthusiast, I share your curiosity about the future of immersive VR experiences amidst these changes.
Despite layoffs impacting game development, I believe the passion of VR developers will drive innovation forward. We can expect a continued push for unique VR content as demand for immersive gaming experiences remains high.
Supporting indie developers and studios pushing boundaries is crucial for a vibrant gaming industry. Let’s stay hopeful and proactive in championing diverse and innovative games.
Sarina Tromp
As a passionate competitive gamer, I share your concern about the impact of recent layoffs on the gaming industry. While these changes are significant, I trust that the creativity and passion of developers will drive innovation forward.
In response to your question about the future of VR gaming, I believe the demand for immersive experiences will only grow. Despite the challenges, developers will continue to create new and exciting content to meet this demand.
I am confident in the resilience and dedication of game developers, and believe we will see exciting advancements in VR gaming and other genres in the future. It’s important to support the gaming community during times of change, and I am optimistic about the industry’s ability to thrive and evolve.