1010°

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
BeHunted85d ago (Edited 85d ago )

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

Sonic188185d ago (Edited 85d 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/...

Cacabunga85d 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..

Christopher85d 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.

ChasterMies85d ago (Edited 85d 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.

-Foxtrot85d 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.

TiredGamer85d ago (Edited 85d 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.

CrimsonWing6985d ago (Edited 85d 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.

GamerRN85d 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,

Lightning7785d ago

Yeah it made news everywhere what's your point?

Oh it's.. Whataboutism diversion tactic.

Einhander197285d ago

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

-Foxtrot85d ago (Edited 85d 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

Christopher85d ago (Edited 85d 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.

Sonic188185d ago (Edited 85d 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

Gamer7585d ago (Edited 85d ago )

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

itsmebryan85d 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.

Notellin85d ago

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

This is absolutely disgusting and unacceptable.

senorfartcushion84d 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.

MrBaskerville84d 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-6484d 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 84d ago
Obscure_Observer85d 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.

85d ago
ifinitygamer85d 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.

Shikoku85d 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.

dumahim85d ago Show
GamerRN85d 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...

Einhander197285d 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.

ravens5285d ago

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