Evolution Studios, Guerrilla Cambridge & SCE London Studio hit by layoffs

Multiple Sony studios have been hit by layoffs this morning, SCEE has confirmed to VideoGamer.com.

[ArchangelMike]

Man, now I getting worried. I know it's not unusual for studios to close, or people to be laid-off. But recently it seems to all be happening at the same time for Sony devs.

[NewMonday]

someone at Sony is going postal on 1st party studios

[Ninjatogo]

Maybe it's part of their company wide restructuring effort?

[abzdine]

i think they better restructure their company to get most out of it.
Let's see the outcome of it but PlayStation division is aware that they have good products they have to focus on.

Maybe also that PS4 developing times are way shorter that all the extra ressources from the PS2/PS3 aren't needed anymore.
cutting ressources will optimize costs and also optimise the development times cause i know that the fewer and competent the better to control the project.

[GarrusVakarian]

We all know Sony are having financial issues, this is called restructuring, companies do this all the time when things aren't going as well as they wish financially. Better to do it now at the start of the gen rather than wait until projects are well under way or things are in motion. If they didn't bother doing any of this then things would only get worse, they have to "trim the fat".

http://en.wikipedia.org/wik...

Sucks for all those people who have been laid off, i hope they find new work quickly.

Edit: Don't mistake my comment for damage controlling, Sony DO have financial problems, there's no denying that. But this *is* common practice for businesses and companies that are having financial issues.

[abzdine]

@Lukas_Japonicus:
not only for businesses with financial issues but mostly for all businesses who want to optimize output. It seems like Sony is doing it for cutting fat as you call it as well but the main reason is optimize and better control their projects.

the reason why i say this is that PS financial situation has been at its lowest a few years ago when PS3 underperformed but they still kept the extra fat cause development times were way longer than they claim they are now with PS4

[Dark11]

Like i said in the past something is going on with sony first party studios .. but fanboys here vote down me for trolling

I wonder who is next ND?

[Evilsnuggle]

abzdine
I agree with you 100% but most gamers don't understand the business. 15 year ago Apple was on the verge of bankruptcies. They did the same thing that Sony is doing now. Apple Did a major restructuring Closing office stop losing money on unsuccessful products and services to help put money for better use just like Sony. First thing Apple did is kill the Newton a product that that apple spent 100 million dollars on in 1993. Company sometime make difficult decision to get back on track. Buy cut costly projects you can invest in better product. They Apple released the iMac it becomes a huge success. The PS4 is also a huge success for Sony like the iMac was for Apple. Sony is taking saving from restructuring and invest it in profitable profitable Products like PS4 , Xperia phones and Sony movie pictures.
Apple was almost bankrupt now it the most profitable Company in the USA.

Death
I never agree with Death but this time he is a 100% right. Sony is a 72 billion Corporation No were near Bankruptcy . They are restructuring to Make greater profits and avoid bankruptcy the same with Nintendo . I read That Nintendo don't need to make a profit until 2025 before they are in danger of bankruptcies.

[GameNameFame]

This doesn't tell us much... Sony is in financial problem.

But this really don't tell you much about what Sony's doing with first party. There were steady report of hiring. GE tends to do this "trim the fat" where they lay people off so they have room to hire more qualified.

[DOMination-]

Also rumours of Corrine Yu leaving ND a few days ago after only a month or two there. Something big is going down at Sony.

[NYC_Gamer]

Sony are just cutting down the fat and trying to save money at all cost..It's messed up that people have to lose their jobs in the whole process though.

[Bennibop]

Perhaps PS4 development is not as labour intensive as PS3 development??

[Concertoine]

@bennibop
They said before its about the same as ps3. Which is a both a testimony to how laborious it was to develop on ps3 and how easy it is to develop on ps4.

[abzdine]

@Concertoine: source?
cause i've heard the exact opposite

[IRetrouk]

@ con

cerney already stated that development time is back down to ps1 dev times.

[Hatsune-Miku]

Well sony as a whole is in a state of consolidation and are getting rid of unnecessary spending and bloat. Simple economics really. That's why top bosses and certain top guys at sony are gone because they can be replaced with people that cost less for sony to pay.

[lelo]

It's not looking good. Why the hell did Sony purchase so many first party studios, just so they lay off so many workers afterwords.

If I worked for Sony at this moment, I would be apprehensive about losing my job. Best of luck for those without a job.

[andibandit]

So people could rave on about how many studios they have here on N4G

[arkard]

We don't know how many workers, so don't act like 50% off the work force is now gone.

[hollabox]

I thought Sony said the PlayStation division wouldn't be affected by layoffs? Maybe that billion dollar lost is hurting Sony more than they led on. Or Sony simply hired too many people to launch the PS4 in over 50 markets in just couple of months.

[Death]

These are sacrificial layoffs in anticipation of the investor meeting next week. Sony's fiscal year ends this week and they are projected to lose over a billion dollars. It's the 5th loss in the past 6 years for Sony. Last year they sold their HQ's to show a small profit to investors. Their movie division is seeing layoffs and closures this week also.

Sony isn't going bankrupt. They are restructuring/downsizing so they do not go bankrupt. It's Kazuo Hirai's second full year as President and CEO of Sony. He has a lot of explaining to do to the board and most likely we will see more cuts in the coming months. It will be good for the long term health of Sony, but the short term will suffer.

As gamers the best thing to do to help Sony is to go buy more new software.

[Edsword]

Restructering is a necessary evil. Will this affect current projects? Maybe, but who knows, they could have been over staffed. It could have been admin people.

[TruthInsider]

Why are they wasting money on VR insead of just adding Oculus Rift support when they are having to lay people off?

Now any benefits to making games quicker are gone if the workforce is shrinking.

[kenshiro100]

I hope these people are able to find jobs. These are hard times we're living in.

I suspect this is part of Sony's restructuring process. Doesn't mean that they're 'doomed' and people need to freak out.

[Ausbo]

This is so unfortunate. Hope these guys find jobs. This is all suprising

[Patrick_pk44]

I find that the restructuring and the lay offs are a magnificent decision. Sony has been overspending on development and employees, while smaller studios can pull of the same amount of effort and work. Smaller studio = less money spent and more focus on the video game being developed.

[gameon1985]

So people losing their jobs is magnificent to you? That's sad that you are happy to see people lose their income because it will help a billion dollar company.Their is jack shit magnificent about this. call it what it is which is fucked up. I normally call people brain washed jokingly, but given your comment I really believe Sony has you brain washed. How the hell would you fill if you told someone your are losing your job because of restructuring, and thier responds is oh that's a magnificent decision; they can just hire someone else and pay them less then they were paying you?

[kenshiro100]

gameon, not ONCE did he imply that people losing jobs is a good thing. He said that Sony has been overspending as of late so its a good thing they're looking into spending LESS money so that they can be profitable in the future when it comes to developing games.

No need to spend money you don't have.

You need to read between the lines next time.

[ramiuk1]

i just hope that the games in development dont get cancelled and there talented devs etc get work on sony or multiplat studios.
Crazy thing with it being UK studios is im sure goverment is just about to announce tax relief for games industry development.

[gameon1985]

some game have all ready been cancelled like the new santa monica ip.

[medman]

It's called trimming the fat. It's unfortunate, but every industry and every type of business must change with the times, or risk being left behind. Sony is restructuring, it's nothing that unusual, it is very unfortunate for the people and their families though.

[dale_denton]

i wouldn't be worried.. just a restructure for profiting. but i'd be worried if the studio closed down.

[Hellsvacancy]

Uh oh, Sony are doooooooooooooomed

I wouldn't worry about it, they probably sacked the guy who made the tea

Companies lay people off all the time, i've been on the recieving end of company cut-backs, I was lazy though

[Bundi]

You are trying too hard to make it seem like this is okay. 20 bucks says the tea guy is still there.

edit: how many times do I have to say it Mike?! I said coffee!! Jeez I really hope you are fired next...or me, get me out my misery!

[Mikelarry]

Yup im still here now remind me do you take two sugars or one with your tea :)

[MasterCornholio]

@Mike

Would you kindly make me an Irish coffee?

(BioShock reference)

[Kribwalker]

This probably is also relevant in the production of consoles as well. I bet they don't shave factories running overtime building PS4s due to funding and rising cost when they run overtime. With their credit rating being reduced to junk, they probably pay high interest rate so instead of borrowing money they wait to sell through their current systems then build new ones

http://www.bloomberg.com/ne...

I know this article says nothing about my theory, it's just proof of the credit rating downgraded to junk

[Hicken]

Your theory is irrelevant, anyway. Junk status assignment by companies that have been questioned by numerous governments around the world doesn't hold much weight.

But of course, that runs counter to the gloom and doom you want to spread. Might as well be a link to misterxmedia's blog, for all the credibility Moody's has right now.

[bleedsoe9mm]

@Hicken its pretty obvious we are seeing a shift happening at sony , its also obvious its bad for the people losing there jobs and disrupting their lives , whether it will be good for the games sony makes isn't something there is a answer , or is it a sign of bigger problems at sony . if the latter is true its not only a problem at sony but will eventually be industry wide.

[iceman06]

@bleedsoe9mm....we are just now SEEING the shift that Sony had already stated would be a necessary evil in trying to return to profitability...restructuring. They hit all of their "bloated" divisions and cut some completely. Now, they are attacking the one that probably hurts the most...the games division. Now, what this should signify is that it's much harder to survive in the business today than it was 10 or 20 years ago. ALL companies will have to adjust, even those with untold fortunes, because they can't just bleed money and hope for things to turn around. We've seen major studios close that have been pretty successful. That SHOULD serve as a warning that things ARE changing. IMO, this is about the growing pains of a relatively young industry and how companies and studios manage to survive the bumps and bruises along the way.

[No_Limit]

Sad news indeed. Hopefully those newly layoff employees will find work as quickly as possible. We can joke and troll on forums and it is all fun and game but when it comes to layoffs, it is a serious matter and we should be prying for those folks and their families.

[MONOLITHICIDE]

Heres a tissue. You clearly need it with that sob comment.

[marloc_x]

Nintendo is hiring, there is always hope :)

[Imonaboat1]

That just sucks ... No one would ever work at a company who fire people left and right.

[BadlyPackedKeebab]

Indeed. We have lots of ex-game devs come into the "normal" software world because of the pay, working conditions etc.

I remember back when I graduated and they print all the awards in the paper. There were 3 times as many students graduating computer games development as there were computer science. Now given the size of the respective industries (games vs every other software including line of business etc) its no surprise the pay is low and they are worked hard.

[mark3214uk]

get ready for the x1 fanboy threads that sony are going bankrupt

[PrinceOfAllSaiyans]

And they love to say "I hope MS hires them to to work on Gears 4." And they wanted Jack Tretton.

OT: This is sad. We really got to lower our expectations for Sonys E3 now. No wonder they Ade so quiet about games. What's next Naughty Dog and Sucker Punch ? And watch Guerrilla's and SCE Londons new games be cancelled.

[bjmartynhak]

Normal to happen when devs wrap up projects, but it's been a long time after KZ Mercenary....

It can also be a sign that Driveclub is really close to finish and they need less personnel.

But at the end of the day, I would rather this people employed and starting new games than Sony investing in R&D for a niche product (yes, the VR)

[DoesUs]

"It can also be a sign that Driveclub is really close to finish and they need less personnel."

Yo are not a million miles away my friend.

[GenericNameHere]

It really sucks that a lot of Playstation devs have been laid off lately. In time of a really successful new console, it's a bit disheartening to hear. Hope they find new jobs though. And certainly hope Guerilla's new IP (they said they've been working on it for 2 years) haven't been cancelled like with Sony Santa Monica's.

[ArbitorChief]

Damn that sucks, Sony really need to bounce back. The Playstation division has been getting layoffs consistently recently and I'm starting to get really worried.

[candy_mafia]

No need to worry...this thing happens all the time. In any dept. at any company, anywhere, if the depts. are not profitable they all get merged or...sadly closed.

It's totally business, not doom. Anyway, I hear MS will pick up any crumbs that Sony drops nowadays, so I guess the developers will find jobs elsewhere...kiddin' of course. ;/

Jokes aside, I seriously just believe Sony do not require the surplus. We'll see new studios popping up/closing during PS4's lifecycle, just like it has always been since PS One's reign :)

[ArbitorChief]

Hopefully, it really sucks that the gaming industry has been struggling. I hate seeing people getting fired. I don't want to live in a world where gaming is all touch controls and F2P on Mobile Phones :(

[pandaboy]

"It's totally business, not doom."

Nice spin there. When a company has layoffs due to profitability it means the company is doing poorly. It's not totally business, it's Sony in a precarious financial state trying to save money at the expense of their first party studios.

[kenshiro100]

Uh pandaboy, do you work at Sony?

No?

Then stop jumping to conclusions. Sony is still going through a restructuring process.

[Bundi]

What? No don't worry everybody, people get laid off every 20 minutes in the games industry so this is totally normal. The financial situation will not affect playstation whatsoever! /s

Welcome to reality folks. this is very sad news and should not be trivialised by making ridiculous statements like "this happens all the time".

[InTheLab]

Except this does happen all the time.

Remember how every month or so you see ads for programmers for some unnamed project? Should studios keep those people forever?

When people like Hennig and Stig leave...that's something to worry about. You have know idea who is being let go here or what their positions were at these studios. If they were heads of those studios, we'd know about it so yes...this stuff happens all the time.

[Bundi]

Really? Because there were people with 10 year tenures who were laid off at SSM and people still said it is normal.
Were they working on a 10 year project and it was time to go?

You people need to learn to differentiate between laid off and end of contract.

[Team_Litt]

What you are describing is a contract. You do not conduct mass layoffs (50 or more people) and call it end of contract/project.

I bet you these people didn't expect to lose their jobs today, pretty sure if you had read the article you'd know and understand that these jobs are being terminated mid project and not in a timely manner at all.

Why are Sony fans so content with sticking their heads in the sand? I mean come on, it is no secret that Sony are in financial trouble, so why is it so difficult to connect the dots when this happens? They said they'd layoff 20 000 people and yet when they layoff PS staff we all pretend it is normal and not at all related to the situation.

Wake up people.

[Salooh]

Wake up for what ?. Sony is bringing us awesome exclusiveS , what is it that bother you people ?. If they don't deliver then come complain. It's sad that they do this but it's not something we can judge with the information we have and we still don't see the effect.

[Salooh]

So all these years there were no lay offs for studios?. They don't announce it every time they do it , if so we would see hundreds of articles like these every year because every time a game released they do something new and that may need other people but they have a budget so they layoff unnecessary employees to achieve what they want. That's just one circumstance. So yes it's a normal thing.

It's like you people complain that sony didn't let Cerny to develop the ps5. You talk like if he didn't do it then there won't be a ps5.

[No_Limit]

I am wondering too with these layoffs, how will that affect first party game development going forward? I would think that having 3 platforms now, they would need more people to build up first party games to support a 3 platforms but this seems kind or worry some to say the least.

[WeAreLegion]

I know I shouldn't worry, but I think we would like some answers.

[candy_mafia]

Hi Legion....aw don't worry dude...probably just time for some new blood, fresh creative.

PS4 is too darn successful for Sony to bleed out right now.

New studios = New IP's = New experiences :)

[Apex13]

The price of next gen development and more expensive games.

If DRM happened Sony and MS would have killed the industry because £55 for a game is a p155 take and I have to trade because I am not going back to the 90's cartridge prices.

[astar123456789]

I think it's because the studies see that they don't need as many people to make ps4 games.... I hope that's all it is.

[DiRtY]

Sony lays off a LOT of people these days. Crazy.

[babis1974]

...this is so sad..1st jack tretton , now layoffs...WTF?

[candy_mafia]

Actually, Jack Tretton could have stayed at Sony, but they couldn't agree on the renewal of his contract.

My guess is, Sony asked senior level to accept a pay cut, Jack said no, Jack ran up the hill to see Jill and we all know what happens next....yada yada.

PS4 will be just fine, you'll see :)

[tigertron]

This is awful news in the run up to Driveclub's release. Shame about GGC too, I love Killzone Mercenary.

[amnalehu]

I don't know why this is news. These studios hire people to work on specific projects. When those projects are completed and there is no pending project, or the next project is in it's early stages of development, people get let go. On any given day you can search these websites HR depts and they will be "NOW HIRING". Case in point:
https://playstation.taleo.n...
The sky is not falling...

[Team_Litt]

You are mistaken. Contracts end and no news needs to be reported. Lay-offs are premature terminations of contracts.
So this is not the same as a project being completed and contracts expiring due to it, these are contracts that are being terminated in an untimely fashion.

Do you not find it odd that the layoffs are happening at the same time across 3 different studios who have various projects that are very likely all in different stages?
Your conclusion makes no sense because no projects have been completed by either studio recently and for these layoffs to happen simultaneously across 3 studios indicates that his had very little to do with projects approaching finish status.

[amnalehu]

Killzone was just completed several months ago. Drive Club is completed or very near completion. Several projects were scrapped.

Very few people remain at one studio longer than 5 years. Just look at some of the resume's of some of the best people in the industry. They have worked vast spectrum of companies and studios. Needs changes, the industry is constantly in a state of flux.

Again, Sony Santa Monica JUST "layed off" a lot of people, and yet if you visit there website (see previous post) they are looking for new people at this very moment. Without change, there can be no progress...

[kenshiro100]

Oh, so that's what it is. I assumed it was part of the restructuring process.

Thanks for clearing the air.

[TheFallenAngel]

That's why we need to buy the games new. So we won't see this.

[Shane Kim]

Lol, what a stupid mentality. If those studios brought us good games maybe we would buy it.

I only pity a bit for Evolution studios, but seriously, Guerrilla Cambridge's last good game was 15 years ago (haven't played Mercenaries so I shouldn't know). And London studio makes stupid party games that I don't give two shits about.

I'm sorry for all the people who lose jobs though, but that's life I guess.

[Death]

Just to give you a heads up, you are what is wrong with the game industry today.

[Shane Kim]

And why is that? Just because I have standards and don't want to play the mediocre games these studios (except for Evolution) has put out, just because they belong to a specific brand. I won't go and buy a game just because SCE or Microsoft has made it. They need to convince me why their console and/or games are worth my money.

For all I care, you are what is wrong with the indusrty. I bet you buy 30 dollar DLC's 3 months after the game releases as well.

[Death]

Ditch the "us" and the "we" for starters. You aren't speaking for anyone but yourself. The hard part will be realizing the world stopped revolving around you long ago.

Killzone Mercenary was a very good game on the Vita and Motorstorm was a great series on the PS3. Driveclub looks very promising for the PS4. As for London, they were responsible for Home, The Playroom and a huge supporter of Playstation Move. London wasn't my cup of tea, but I am humble enough to respect what they have done.

[cell989]

Sucks for Guerrilla Cambridge, I really lived what they did with KZ mercenaries

[DCfan]

Working in this industry must be pretty bad

[Fz6soldier]

Not too long ago people were saying Ford is finished, they were laying people and in debt. They made the made the necessary lay offs and changes to make a comeback. This is what Sony is doing.

[C_Ali88]

How long ago? As I recall Ford withstood the recession with no bailout due to their confidence in their financial profitability.. I've said it time and time again this is not a good sign, yet fanboys sugarcoat it.. Maybe Morpheus is a little too much for their coffers at the moment... Should focus on games not peripherals.

[Fz6soldier]

2006-2008 ford was not looking so good. they were able to turn things around without bailout money, but they had to make huge cuts and changes for the long term. sony can't heal overnight, it could take a decade.

[amnalehu]

EXACT @ Fz6soldier

[NeloAnjelo]

These studios are being streamlined I think.

I hope they all find jobs.

[gameon1985]

Damn every time you look around Sony is laying off at their game studios. You know they are going to shut down 1 or 2 eventually the way things are going. This is so strange given all the success PS4 is having. I was reading a article the other day where some idiot was saying Xbox fans should be worried because Marc Whitten is leaving (and soon will be replaced by Jack tretton..we all know it's happening) to go and work for SONOS. Really worried because one guy is leaving?. However,in reality there is no doubt that Sony fans are the ones who really needs to be worried. I bet you people are expecting as many exclusives as last gen right about now if you are being realistic. I keep having this gut feeling that in the end the xbox one will with out a doubt be the best console to own, and the way things are going it seems like my gut is telling me right.

[FAT MAN GO BOOM]

lol this is SOP at the scaling down of a console. PS3 is coming to end can you blame them for cutting back.

Layoffs are a huge part of this industry since everyone is one a contract base. Once a project is done they get rid of people.

specially when it is near the end of a consoles life.

It is a good way to purge those you don;t want or like or need at the moment.

I think a lot of people are making a mountain out of a mole hill here..

[bleedsoe9mm]

seems like the industry is shifting from big studios to smaller independent studio that specialize of parts of games and work on a contract basis . with games getting more complex this generation big studios would collapse under their own bloat

[Dan_scruggs]

An awesome list of recent Sony developments as posted on IGN

KillerByteGA2 Posts

It looks like it isn't a good year so far for Sony

- Closed remaining Sony Retail Stores

- Sold Tokyo HQ

- Jack Tretton leaves the company

- Sold the PC Division

- Laid of developers at SSM, Evolution, Guerilla and SCE london

- Sold Texas office

- Laid off 216 workers at Sony Pictures Entertainment and 70 in Interactive division

- Sony Electronics announces layoffs; 400 affected in San Diego office

[aquamala]

Sony's own forecast says they'll lose 1 billion $ this year, they're doing what needs to be done to survive, people may think other divisions losing money at Sony have no effect on the gaming division, well yes it does, we are seeing it right now

[Ninjamonkey82]

Never beat Cod ghosts myself (Using crap game for example) but i remember marveling at the amount off people that where in the credits for the game.

Remember thinking to myself what a joke. Indie company now days make games that out strip most off the experiences you find in first party games no problem with teams you can count on two hands.

Yet you have credits at the end off Cod ghosts for job fill outs that would set up a small city. Was thinking to myself surely the infinity ward team don't actually do any work?.

Thing is games like DayZ etc are build by teams far smaller than the teams working on many the big games now days do you need so many people working for these AAA titles?.

Don't like seeing people out off work but there is a such thing as freeloading as well ain't there.

[Beastforlifenoob]

Because
1.) The game is usually finished in about 8 months
2.) Most of the team works with things such as marketing, direction, etc.
3.) Indies have alot more on their back so they may be forced to work for far, far longer hours

[D-riders]

the game indusrty has tons of layoff and migrations

[OC_MurphysLaw]

I hate hearing about layoffs, it just sucks.

Could this be the price to be paid internally at Sony for pursuing the VR tech at a time they are going through such a major re-organization? Just wondering if the continued pursuit of VR (R&D costs) forced them to cut more budget elsewhere?

[Gigus]

Ouch. More and more layoffs. Hopefully this isn't affecting all their new IPs, they already canceled one :/.

[jimbobbeers]

Ouch. I don't get it, Sony can't make enough PS4 consoles, yet they keep laying off their staff. This doesn't make sense.

Then there is the VR headset, surely its not viable to risk everything on it? If it fails to meet targets I fear the worst for Sony.

[GiantFriendlyCrab]

some idiots right now are cheering for the layoffs

[Solitaryswordsman]

Hate to see anyone lose their jobs (have experienced it myself), however game development is a transient career, especially in the west.
Could Sony be trimming down to a core team of developers where they know they will get their Roi ? Who knows but maybe the likely hood of 3rd party titles selling better on ps4 could be a factor.