Sony Interactive Entertainment is all set to let go 900 members from its gaming division. The US-based PlayStation Studios’ employees associated with Naughty Dog, Insomniac Games, as well as its technology, creative and support teams will be impacted. That means, about eight per cent of its workforce will be laid off.
As far as the studios in the UK and Europe are concerned, the London studio will be shut down in total and jobs will be axed in the development studios, Guerrilla and Firesprite.
The London Studio had come into existence in 2002 post merger of two other London-based studios under PlayStation. In the last 20 years or so, it has developed many game series including SingStar, a karaoke game and the football title, This is Football.
This move to downsize was reportedly taken after much consideration and discussion amongst the leadership. The measure was felt necessary to help the company to continue its business growth and development as was reportedly communicated by Jim Ryan, chief, PlayStation, to his employees.
Due to decreased sales of gaming consoles (PS5) in the last quarter of 2023, the Sony Group had already reduced its revenue forecast. Only 8.2 million units were sold as against the targeted shipment of 25 million units. It is expected that about 21 million units of PS5 will be sold this financial year.
It has hardly been a month since Microsoft announced its intention to let go 1,900 people from its gaming division, including some from Activision-Blizzard, which it had recently acquired. Clearly, the gaming industry is going through a rough patch, worldwide.