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An Important Update from PlayStation Studios

Herman Hulst writes: Today, Sony Interactive Entertainment initiated a reduction in our workforce – including within PlayStation Studios – and I wanted to talk about the impact that will have. 

These decisions have been extremely difficult, but they are necessary, and I think it’s important to be transparent:

The US based studios and groups impacted by a reduction in workforce are:

Insomniac Games, Naughty Dog, as well as our Technology, Creative, and Support teams

In UK and European based studios, it is proposed:

That PlayStation Studios’ London Studio will close in its entirety;

That there will be reductions in Guerrilla and Firesprite

Read Full Story >>
sonyinteractive.com
BeHunted807d ago (Edited 807d ago )

PlayStation employed 8,000 people as of August 2023, which meant that 11.25% (900) of the employees had been laid off.

Sonic1881807d ago (Edited 807d ago )

Didn't Microsoft layoff over 1,000 employers not too long ago? It's happening all over the gaming industry

https://www.theverge.com/20...

https://www.google.com/amp/...

Cacabunga807d ago

I think sony are really stupid and underperforming this gen with their gaming division..
if they announced more projects, none of this would have happened.. after closing Japan studio, now another legendary studio from London is closing..
it also turned out that the investments they have done by buying Bungie and others still hasnt given any result and benefit..

Jim Ryan, Herman Hulst on top of the chain should first be removed instantly they are amateur management..

Christopher807d ago

All of these companies are making profit and yet to keep profit margins they MUST get rid of people and force them to live with the increased cost world we live in.

It happening elsewhere doesn't excuse the economic issue and destabilization of the industry when it comes to people leaving it because of the larger number of firings. That's a lot of very knowledgeable and talented people leaving the industry for profit margins.

ChasterMies807d ago (Edited 807d ago )

Microsoft laid off a thousands across the company, including in the Xbox division, before buying Activision and more recently 1900 employees from Activision studios. Every tech company and game publisher is laying off workers. Maybe margins on software are falling. Maybe they expect AI to pick up the slack for less.

-Foxtrot807d ago

Cacabunga

“Jim Ryan, Herman Hulst on top of the chain should first be removed instantly they are amateur management.”

Well Jim is gone at least but I doubt it was “early retirement”…it’s complete and utter bullshit. No person puts a plan like moving their studios into GaaS projects and decides to bail before the fruits of that plan can be harvested

Sony saw they were in trouble thanks to him, the GaaS model has slowly started dying and they are either stuck with the projects that are almost done or the ones they’ve now cancelled while they could.

TiredGamer807d ago (Edited 807d ago )

Running a business is not a charity. Just because you are "making a profit" doesn't mean that you can continue to resource and fund parts of your operation that are not providing a return on investment. That's how good companies die - by not adapting, by not changing, and by not reducing areas of the business that are actually a drain on operations. Just look at the graveyard of the thousands of businesses that have come before.

Layoffs and cancellations suck, but they are and have been facts of doing business. Refining operations helps to preserve the rest of the company and the rest of the employees from complete dissolution.

CrimsonWing69807d ago (Edited 807d ago )

@Foxtrot

Yea but look at the success of Helldivers 2. 3 Mill sold already and nobody has complained that it's a GaaS game.

Hell, at one story I had someone comment to me that they didn't think Helldivers 2 was selling micro-transactions and is GaaS done well, when the reality of it is they are selling micro-transactions. Is there a GaaS game that doesn't rely on recurring revenue? That's literally the whole philosophy around the design, make an incomplete game with a budget spread out over many years and pray that consumer whales keep dumping money into it through its entire lifecycle.

People are loving Helldivers 2 and as a result you can bet that the door is now WIDE open. 2025 will be Sony's GaaS releases from the great Jimbo initiative. I do know there was the talks that Sony may have cancelled a handful, but with Helldivers 2 succeeding and Spider-Man 3 having some weird GaaS design around it, I think we've pushed the industry in the direction of this being a success. I do hope gamers enjoy.

GamerRN807d ago

@Sonic1881

Microsoft, if you read the article, has over 22,000 employees in the XBox division. They laid off approximately 8 percent, and all the Sony fans commented that they were the devil. Sony just laid off a larger percentage of staff, and your response is to point to Microsoft?

Anyway, the point is, the gaming market has stagnated, and it's time for a change. I think its more related to COVID and the upcoming recession, but I dont think the big companies are willing to weather the storm,

Lightning77807d ago

Yeah it made news everywhere what's your point?

Oh it's.. Whataboutism diversion tactic.

Einhander1972807d ago

It was 1900, but Microsoft has fired over 5000 people from it's gaming division recently.

-Foxtrot807d ago (Edited 807d ago )

@CrimsonWing

The difference is Helldivers 2 is not a first party game

The issue with Jim is his GaaS plan involved his core first party single player driven studios which has totally f***** their steady flow they had going on

So it’s a different scenario

Helldivers 2s success did not come at the expense of derailing some great studios within Sonys gaming division

Christopher807d ago (Edited 807d ago )

***Running a business is not a charity. Just because you are "making a profit" doesn't mean that you can continue to resource and fund parts of your operation that are not providing a return on investment.***

Here's the problem, the people who are not utilizing those resources properly are not getting fired. A great developer on a project that some exec pushed and is a failure isn't their fault, it's the exec's fault. But who pays the price? The developer.

This concept of the people at top can just keep failing and others take the fall is the problem. And those people making those failing decisions? Still getting paid, still developer experience to go elsewhere, still costing other people livelihoods.

Running a business in this day and age treats employees as being disposable while hiding the failures of those in charge. Yay? Jim's one decision cost at least 900 employees their livelihood and not one exec at the top is able to find a way to use those resources. It's never possible to reallocate resources today, they must be let go.

Sonic1881807d ago (Edited 807d ago )

@GamerRN

My point is that it's happening in the whole gaming industry and not just Sony. I can't speak on Nintendo because I don't know their situation. This is just the beginning, I see more layoffs incoming from Sony and Microsoft

Gamer75807d ago (Edited 807d ago )

They did and people on here criticized them over it and Sony deserve to also be criticized

itsmebryan807d ago

@sonic
What does that have to do with what @BeHunted said. It's sounds like a deflection.
Like I have been saying Sony is not doing well and I hope they get back on track. No, first party AAA games for a year , layoffs, 26% drop in operating income,
etc..

First smart decision was to follow Microsoft to PC with games day and date.

They were leaving too much money on the table.

Notellin807d ago

There are zero excuses for these layoffs. Insomniac games is printing them money.

This is absolutely disgusting and unacceptable.

senorfartcushion806d ago

IT DOESN'T MATTER ABOUT WHO DID WHAT.

FANBOYS ARE HELPING RUIN THE GAMING INDUSTRY WITH THEIR COMPLICIT IDIOCY.

The companies don't care about you and will make your gaming experience worse the longer you're forcing yourself to be loyal.

MrBaskerville806d ago

7000 layoffs in a year, if I'm not mistsken. A large portion of us were fired during january and february. Aiming high for new records!

Redemption-64806d ago

@Cacabunga

No one with an iQ above room temperature would expect the Bungie acquisition to show results within 2 years or less, especially with games talking 4-6 years to develop.

+ Show (16) more repliesLast reply 806d ago
Obscure_Observer807d ago

"PlayStation employed 8,000 people as of August 2023. This means that 11.25% (900) of the employers have been laid off."

That´s a lot!

Another veteran Playstation first party studio got the Axe!

Another first party game canned. Hundreds of developers fired.

Another sad day in the gaming industry.

807d ago
ifinitygamer807d ago

@ariv88, actually it's more than Microsoft by percentage - Microsoft laid off about 8.6% of its workforce, 1,900 of 22,000 people. It's a bad day for everyone, but don't spread misinformation while also calling someone else a troll.

Shikoku807d ago

@ifinitygamer

That's why percentage aren't useful here stop spreading misinformation. 900 is less than 1900 period full stop. Also Sony didn't do a merger with another giant company then lay people off.

dumahim807d ago Show
GamerRN807d ago

@shikoku

Percentages are very important. Yes, 1,900 is greater than 900, Im very proud of your keen math skills...

But, 11.25% is greater than 8.6%...

The bottom line is, both companies made comparable lay offs, and its a sign of an upcoming change...

Einhander1972807d ago

That 1900 was only Microsoft's latest round, they have fired over 5000 people from their gaming division and over 20,000 people across the company in the past 2 years.

ravens52807d ago

He speaks the truth. Smdh it's crazy what's going on in the gaming industry.

Philaroni807d ago

I hate to say this, but its going to get worse. I mostly work in IT now and even though its not reported here. Its hitting everyone. I think it was CITI group that just talked about laying off 20K people...

"Earlier this month, the third-largest U.S. bank announced plans to reduce its headcount by 20,000 people over the next two years."

https://www.reuters.com/bus...

I just don't want people to pretend its just gaming and such. Its becoming a massive thing.

COS807d ago (Edited 807d ago )

@Einhander1972

I would stick to the gaming industry numbers, Microsoft has 222k employees, Sony has 113K.

Redemption-64806d ago

@GamerRN

Percentages are useless if you ignore other numbers. For example, MS laid off 10K people around January 2023 and about another 10K before the acquisition closed. This was followed by the 1900 last month. The only way to say Sony's Percentage is higher is to ignore all the layoffs from MS last year and only focus on this year only

FinalFantasyFanatic806d ago

@dumahim,
Holy moly, I've never seen that happen, even when he is right, everyone is taking Ls in the industry lately.

+ Show (8) more repliesLast reply 806d ago
RaidenBlack807d ago

According to Bloomberg's Jason Schreier, Sony has also canceled the new Twisted Metal live service game in early development at Firesprite for PlayStation 5 and PC.

Lightning77807d ago (Edited 807d ago )

Is saw that. I'm very, very upset about canning the Twisted Metal game. Sony wants LS games then cans it it makes no sense. Twisted Metal makes perfect sense for LS game imo.

Dark Day today that's for sure.

RaidenBlack807d ago

@Lightning77
Yea, agreed .... Twisted Metal absolutely makes sense as a live-service game ... canning that and still shipping other shooter live-service games seems bizarre
Haven Studios' live service game is a heist one ... even if we consider it being a cool project, can it be Twisted Metal level cool?

derek807d ago

@Lighting, and between you and Sony they actually know what state the project is in and how viable it is going forward.

Lightning77807d ago

Fairgames. I guess it can be but I dont know if it'll be as, I guess, interesting as Twister Metal? We get the general premise of Twisted Metal, car combat, customization etc. If Fairgames could could be a very different take since it is a Extraction shooter.

I think TM could be that game to headline Sony's LS games by using a fairly popular name like TM. Now perhaps they'll use something like Fairgames or Concord to headline their LS now.

anast806d ago

It was a wise decision. The crowd that was clamoring for this game was relatively small. I'm curious why they thought bringing this game back was actually a good idea. It would have done well under a million sales.

+ Show (2) more repliesLast reply 806d ago
MrNinosan807d ago

It's actually 8% based in what Jim Ryan have announced, but it's still very sad, just as all the lay offs lately.

thorstein807d ago

It's sick no matter who does it.

Profits over people.

Payroll should always come before profit.

MrNinosan807d ago

Well with your thinking, next to zero companies would exist.
Business need to think profit first to survive, however tough it sounds.

crazyCoconuts807d ago

seems there are some parts of the world that still aren't getting econ textbooks

Ps5conehead807d ago

Without profit there’s no payroll

thorstein807d ago

Without employees there's no profit. Wow. If only a few of you had passed high school econ class and English rhetoric then you'd know that ad hominem, red herrings are fallacies used when someone doesn't have an argument.

MrN. Not for profit capitalism exists. I have np problem with profit at all costs capitalism dying.

+ Show (1) more replyLast reply 807d ago
MagUk807d ago

Yeah but….. what about Microsoft.

derek807d ago (Edited 807d ago )

@Cacabunga and Foxtrot, you guys continue to live in an alternate reality. No playstation has not been "underperforming" this gen, and yes Jim Ryan retired after 30 years on the job now in his 60s. Both of you provide no objective measure to support your nonsensical claims. It's sucks that people lost their jobs today full stop, but corporate restructuring is a reality even in the best economic times. To claim gaas was a mistake is stupid/short-sighted especially given that Sony just launched it most successful gaas game to date.

derek807d ago

@GamerRn, no what people like me stated in regards the recent abk layoffs was that it was highly predictable and that many of the xbox dopes who argued the acquisition would be great for abk employees looked pretty dumb in making such claims. Microsoft even got a stupid trade union to back the acquisition which has since blown up in their face.

COS807d ago

Not that Sony is doing everything right, but I think the layoffs have more to do with the state of the industry. The Tech sector in general does a majority of layoffs this time of year. If you look at the gaming industry in general, mobile is growing at a significantly higher rate than console. 2.8 Console vs 10% Mobile. Covid factor is gone, people aren't staying home as much to play games, and Developers are way behind on games. It is a madrid of alot of bad things happening in a close timeframe.

+ Show (6) more repliesLast reply 806d ago
807d ago Replies(9)
OtterX807d ago

London Studio complete closure is devastating to hear. I was hoping for a Blood & Truth 2 on PSVR2, or at least a Remaster....part 1 was sooo good! :(

crazyCoconuts807d ago

To make matters worse there's a rumor going around that a Twisted Metal game was cancelled (probably theirs?)
To play that game in VR with a wheel, using cross play with non-VR players would have been amazing.
I'm not gonna cry about it, but... oh... crap.... alright, i guess i will a little :'-(

ApocalypseShadow807d ago

Agreed. This is utter bullshit of profits over people. Was also hoping that Blood and Truth 2 might be coming. Canning the studio won't allow that to happen.

I was just telling someone recently that in PM that Sony needs to do something than ride on profits. This sucks.

solideagle807d ago

I don't understand reductions in insomniac games. They just delivered Spiderman 2. Maybe contractors were let go.

After Japan now London :(

porkChop807d ago

Contractors wouldn't be counted as full time staff. These were actual Insomniac devs.

MrBaskerville806d ago (Edited 806d ago )

I think higher ups might be of the opinion that they spent too much money on Spiderman 2 and wanted them to scale down.

Another theory I have, is that they hired people for some gaas project and has now canned it. Have a feeling that Sony is pivoting away from gaas again, which is why the whole operation has stalled and why people are loosing their jobs.

No matter what, it's poor decision making of CEOS that has caused this. CEOS that continue to earn millions.

FinalFantasyFanatic806d ago

What was even the thought process behind closing Japan down?

shadowT807d ago

Yes, at least a PS5 remaster.

+ Show (2) more repliesLast reply 806d ago
Asterphoenix807d ago

It's gutting that employees are getting laid of. It's everywhere all for the sake of higher ups keeping their dollars 😭.

FinalFantasyFanatic806d ago

I don't understand why gutting the CEO's pay isn't the first thing companies do, it's obviously bad management, you could probably save a portion of those jobs by docking their pay. I recall that a Nintendo CEO docked his own pay to keep staff at one point when the company wasn't doing too hot.

VincentVanBro807d ago

Yikes 😩 more industry layoffs.

Show all comments (228)
70°

Microsoft Gaming Revenue Drops 7% Year-on-Year, Content and Services Down 5%, Xbox Hardware Down 33%

Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.

Read Full Story >>
simulationdaily.com
Jin_Sakai15d ago (Edited 15d ago )

Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.

dveio15d ago

To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.

Jingsing15d ago

The stock mark is what makes Microsoft remarkable, They have convinced every institutional and retail investor to just keep piling money into them. Like many big tech giants they are just a big growing pyramid scheme. As long as people keep dropping money into ETF's that cover the market Microsoft will always be liquid. At the same time it is completely stifling innovation and competition. People need to start being more discreet in how they invest their money as it's killing the system.

Tanktopmaster9215d ago

Once they re-evaluate exclusive all will be fine….

S2Killinit15d ago

Riiiiight because people will just flock back to them for one or two games per year.

Jingsing15d ago

15+ years of bad performance is what they call irreparable in business. It is time for them to sell off the assets and get out of entertainment.

Tanktopmaster9215d ago

These declines are on the back of extra revenue received from releasing games like Forza horizon 5 on PlayStation. So I’m being sarcastic here when I said they should go back to exclusives. Killing off a revenue stream from Ps5 sales will only make things worse

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50°

Spiders Studio, Developers of GreedFall: The Dying World, Announce Liquidation of the Company

Spiders: "We're going to cut straight to the chase so you're not left wondering: After a long period without clear answers, we have received confirmation that Spiders is being liquidated.

What does it mean? This means the company as a whole no longer exists. We'll cease our functions immediately. The planned DLC will release via Nacon, and then-- well, that's it.

We're sorry that it's come to this and would like to thank each and every one of you for your support over the years.

If you have any questions or run into issues with your games, please contact Nacon directly as we'll no longer be able to reply."

40°

Koei Tecmo Announces Record Financial Results After Releasing Many Big Games

Today, Koei Tecmo announced its financial results for the full fiscal year 2025, related to the period between April 2025 and March 2026.

Read Full Story >>
simulationdaily.com