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PlayStation Cutting 900 Jobs And Cancelling Games, Affecting Spider-Man, Last Of Us, And Horizon Developers

Insomniac, Guerrilla, Naughty Dog, Firesprite, and other teams are facing layoffs.

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Sony's PlayStation division is cutting jobs in the latest round of high-profile layoffs in the video game industry. By some estimations, 2024 has already seen more than 7,000 video game industry layoffs. Reporter Jason Schreier of Bloomberg was first to reveal the cuts, which have subsequently been confirmed by Sony in a blog post.

Related to these moves, PlayStation is proposing to close its London games studio, which was most recently responsible for developing PlayStation VR games. Cuts are also coming to Sony's other studios, including Firesprite, Insomniac Games, Naughty Dog, and Guerrilla. PlayStation's technology, creative, and support teams are also affected by these measures.

Additionally, SIE is cancelling some games. "We looked at our studios and our portfolio, evaluating projects in various stages of development, and have decided that some of those projects will not move forward," the company said, though it did not name them outright.

One of the cancelled games was a Twisted Metal live-service project, according to Schreier, though this game was very early in development and not even greenlit yet.

In a blog post, outgoing SIE CEO Jim Ryan said it was an "extremely hard decision" to make these cuts, which amount to 900 people or about 8% of PlayStation. Ryan is leaving in March.

"These are incredibly talented people who have been part of our success, and we are very grateful for their contributions. However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead," he added. "We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming, so we took a step back to ensure we are set up to continue bringing the best gaming experiences to the community."

Ryan said in a memo to staff that layoffs are coming to every major SIE region, including the Americas, EMEA, Japan, and APAC. He also confirmed that, in the UK, Sony is proposing to close its London Studio "in its entirety" and make cuts at Firesprite. There will also be "reductions" to "various functions" across SIE's teams in the UK.

"For those who will be leaving SIE: You are leaving this company with our deepest respect and appreciation for all your efforts during your tenure," Ryan said. "For those who will be staying at SIE: We will be saying goodbye to friends and colleagues that we cherish during this process, and this will be painful. Your resilience, sensitivity, and adaptiveness will be critical in the weeks and months to come."

Affected staffers are getting severance benefits, Ryan added. "Our goal is to remain agile and adaptable and to continue to focus on delivering the best gaming experiences possible now and in the future," Ryan said.

The executive said management has been having discussions "over the past few months" regarding the "evolving economic landscape," as well as changes to how SIE develops, distributes, and launches games. Based on these talks, Ryan said "tough decisions have become inevitable."

PlayStation Studios boss Hermen Hulst said in his own blog post, "PlayStation 5 is in its fourth year, and we are at a stage where we need to step back and look at what our business needs."

Sony recently held an earnings briefing where it announced that it's lowering PS5 sales targets. After this, Sony's stock value--on paper--lost $10 billion in value. During an earnings call, Sony's president said the company wanted to be "aggressive on improving" profit margins.

Earlier this week, Until Dawn and The Quarry developer Supermassive announced mass layoffs. Microsoft cut 1,900 positions at Xbox earlier this year, and Microsoft Gaming CEO Phil Spencer said the cuts were necessary to improve shareholder value. Twitch, meanwhile, laid off 500 people, while Riot laid off around that number as well.

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Player_1_Ready

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London Studio getting shutdown?

Ouch!

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Bahamagamer

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I pray for all the people this affects and their family and friends. May God bless and keep them and give all those who need them new better jobs soon.

God bless everyone.

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Plurmp

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Edited By Plurmp

Sony should stop censoring niche games and start investing in more first-party exclusives. PS3 and PS4 had a ton of great exclusives. PS5 only has Demon's Souls and FF16. If they had any sense, they would make Bloodborne 2 and stop isolating their player base with ridiculous censorship policies.

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NEVRfearJBhere

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I know sony has been publicly traded forever but these corporations have ruined gaming. Gaming used to be fun, developers used to take risks. Now every company is a publicly traded company and has to come back to the investors with results. Games today are all the same and try to squeeze every dollar out of you; even years after you purchased the game. I miss the old days

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tbird7586

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All of the cuts should've came from guerilla, insomniac and naughty dog theyre bleeding Sony dry making the same games over and over how the hell does spider man cost 100 million and the sequel with the same city and assets cost 300 million? It's bullshit they're closing a studio that makes original games and hasn't had their chance to shine

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Nargg

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Edited By Nargg

The last paragraph states it all. "to improve shareholder value." So to hell with the general value of people, it's only for shareholders. Shows what the World has become. Nobody wants to improve anymore, only a few get rich while all others suffer. Sickening.

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Chubby170

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@nargg: Without shareholders, there would be no company. The goal of a business is to maximize profits...

You dont keep employees for no reason in a business. Thats a big waste of resources.

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tjkraz

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@nargg: Every pension plan, 401k and other investment fund are shareholders in publicly-traded companies. This isn't just about the super rich becoming super richer. If you plan to retire someday and have income that goes beyond Social Security (at least, in the US), you better be setting some aside for investments. And hope that your fund manager is investing in companies that return higher and higher value.

I'm not in any position to comment on this specific move. But economic growth is important to everyone. It's very difficult to weigh the long term health of the organization vs the unfortunate reality of job losses.

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cwilli11

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Live service, and ESG has killed so much in gaming. Hopefully these large companies can course correct.

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JimG81

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@cwilli11: Id rather have live service than all this left wing nonsense thats being put into video games right now.

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drdavewatford

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Edited By drdavewatford

It’s time for Sony to follow Microsoft’s lead and let a few exclusives go to other consoles. Given the spiralling cost of development, it’s crazy that platform holders exclude a large chunk of the gaming market from buying their games.

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KanaKID

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I think the picture here is that they cut most of the live service games in production when they realise that the chances of a GaaS be popular and profitable are like winning the lottery. Too many examples lately of failing big budget GaaS, Anthem was the beginning of the end of that model probably. A GaaS has to be a small production: if it works it's a goldmine and if it doesn't work it's just a small investment that went wrong. Definitely it's not worth making an AAA GaaS these days.

On top of that they are probably resizing the VR department: London studio -I think- was responsible for the tools for VR games, probably they are happy with what they got. Despite what Zuckerbeck thinks, VR will never be mainstream in the short run, it's just a gimmick too complicated and too limited to appeal the big market. For Sony is really a small niche, just a side project where it's not worth spending too much money. As a PSVR2 user I kinda like the fact that the headset is mostly used to enhance experiences of normal games (like GT7 o RE 4, 8), but this makes the VR and accessory more than a real platform so it's really something that doesn't require big investments.

Having said that that's just disgusting, going to party just 5 days before shutting the studio out of the blue is a disgrace.

This underline, once again, how stupid is fanboyism and console war: they are all greedy mother**** that only care about making money.

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BoobyTrap

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Edited By BoobyTrap

@kanakid: good sentiment!

I also own a PSVR2 and I think Sony dropped the ball on this one. There are multiple factors contributing to that: they released it at a bad time when most people actually got out of their houses and apartments, being tired of the pandemic. The travel surged last year and broke many records, even some pre-pandemic ones. That headset should’ve been released at least one year before or, ideally, 2. It would’ve been a big hit. Clearly, it wasn’t ready then.

Also, there were not enough big-seller games on it. I think Horizon Call of the Mountain was a great technical showcase, but it was just one game. I still can’t believe they haven’t released a new Astro Bot game. Not even during last year’s holiday season. That would’ve been a massive hit and would’ve helped to promote the platform further.

Overall, I think the previous PSVR was more successful due to its novelty. I know many people who bought it to try it out, because they were curious. The same people didn’t get the PSVR2. It’s a shame since this iteration is a big improvement on every level.

I think Sony will keep it on the back burner now, as it’s clearly not their main branch of business and, under the financial circumstances, it will get the least amount of their attention.

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lion2447

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"Twisted Metal live-service"

I read as "Twisted metal" aw yeah... "live-service" ...never mind.

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s1taz4a3l

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And still no crossplay. Sony so dense, light bends around it.

They still think Destiny 2 is their holy grail.

At least this means an even shorter window to please the Master Race.

You are forgiven Sony, carry on.

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Nargg

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@s1taz4a3l: You forgive too easily...

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s1taz4a3l

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Edited By s1taz4a3l

@nargg: Its because i havent spent one cent on Sony exclusive hardware or games.

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Dushness

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surprised playstation is cutting rather than investing in more great gaming experiences

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Nargg

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Edited By Nargg

@dushness: Only to appease shareholders. To hell with gamers or developers.

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sladakrobot

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Told you so few days ago.
What makes this even more disgusting is that Jim LyingRyan visited the London Studio about a week ago,made selfies with them and was "playing" happy Sony family!

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BDRTFM

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Edited By BDRTFM

Not a lot of money in hardware sales so outselling the competition 2 to 1 isn't much good unless there are a lot of great games to sell licensing fees for, or copies of, if you own that game. Last year was a pretty slow year for 1st and 3rd party games and this year seems to be looking like its going to be an even worse year. Games being cancelled all over the place is not a good sign. Sony getting goofy over live service games isn't helping either. They're known for their stellar, story driven RPGs and those seem to be a long way off. Games are getting more and more expensive to make but the quality of the games doesn't seem to be matching the cost of production. The industry needs to get back to making games with solid gameplay and a good story rather than worrying more about eye candy than anything else and then spending $500 million in advertising to try and sell their polished turd. When you have to bring in teams from half a dozen studios to help with one game, you are doing it wrong. Oh, and while you're at it, stop spending hundreds of millions of dollars to convince developers/publishers to strip a small piece of every game made to give to PS owners as bonus DLC. People are already buying your console faster than you can makes it. You don't need to throw money away to convince them to do what they are already doing.

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BoobyTrap

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@bdrtfm: the thing is all these consoles are usually sold at a loss for the first two years. The pandemic and the inflation have made things even worse for both Sony and Microsoft.

You can see what Sony did with the Slim: they actually increased the price of the all-digital version from $399 to $449. Even after 3 years they can’t lower the price and actually increase it to offset the increasing cost of the components.

But overall, it’s a reaction to many things at once: inflation, the bloat that the tech sector accumulated due to the pandemic, increasing cost of development, etc.

I don’t think it’s all doom and gloom yet, but this course correction will hurt a lot first.

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Nargg

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Edited By Nargg

@boobytrap: The correction already has overcome the gains during the pandemic, so that excuse is no longer valid. This is all to make their shares look more enticing to investors, nothing else. Not for gaming, not for developers, not for anyone other than shareholders. The stock markets have become the enemy of the common man.

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BoobyTrap

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@nargg: during the pandemic they were all hiring like crazy. Right after the height of the pandemic, circa 2022, they were still planning their budgets and making projections based on the numbers they saw in 2020-2022. So no, the course-correction only started happening last year, as we saw with all major tech giants. It’s still happening this year.

The shareholder sentiment has always been valid and it has always been important to all these publicly traded companies. They didn’t start caring about it just now, but their quarterly results have not been stellar, hence even further layoffs.

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Mraou

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With all the censorship policies and questionable agendas and writing choices, lately Sony have been very much of touch with their own fanbase.

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RSM-HQ

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Edited By RSM-HQ  Online

Probably from all the "live service" games that got planned a few years back. Hopefully majority never see the light of day.

Assuming one would be as big as Fortnite was always a stupid idea. Fortnite didn't even know it would be as big as Fortnite.

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illegal_peanut

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@RSM-HQ: Also, here is a thought. Why would people want the "new Fortnite" when they already have Fortnite?

This is the same stupid ass mistake companies made when WoW got popular, or Halo. With their "Halo Killers", or "Better World of Warcraft" projects. Maybe people play World of Warcraft for World of Warcraft, or Maybe people play Halo, for Halo.

People don't want "I can't believe it's not Fortnite, Fortnite", or "All new Fornite.", or "Vegan Fortnite", or "Fortnite Remix". Why? because they already have Fortnite.

It's funny how businessmen worry about facts, numbers, and the history of product performance all the god damn time. But make the same goddamn mistakes that they witness in OLED 8K at 365FPS, years ago. How do I know? Because made the exact mistakes themselves and were a part of it.

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OldDadGamer

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OldDadGamer  Moderator

@RSM-HQ: That's what I was thinking. Publishers overdid it on planning live service, and now the workers pay the price. There was no way the industry was going to support all the live service they were chasing.

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BoobyTrap

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@olddadgamer: because they all projected their spendings based on 2020-2021, thinking the same amount of people would be playing these live-service games. The whole tech industry overprojected, overhired, overestimated things and regular employees are footing the bill now.

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illegal_peanut

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@boobytrap: Yeah I love how they never thought for 4.5 seconds that,

"Hey! Maybe this higher player base stuff from the pandemic isn't going to last forever. Because no pandemic ever does."

But, all they could see where numbers and nothing else.

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OldDadGamer

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@boobytrap: Yup. Happens in every industry. Companies chase the shiny new thing only to realize that it's either a fad, there isn't a huge market for it or both, and, by the time reality sinks in, ordinary people get screwed.

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BoobyTrap

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Edited By BoobyTrap

@olddadgamer: and it really sucks, because some truly talented people might quit this industry for good after these traumatic events. The job market as a whole has not been great in the US. I’m shocked to see that many companies are still offering pays from almost 10 years ago. It’s insane, considering the inflation rate for the past 3 years.

Last year many movie industry workers left that industry for good since they couldn’t afford going jobless for 6 months. Those strikes were no joke.

Not the best time to be a creative professional…

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illegal_peanut

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I still find it funny as hell that the "fastest growing industry in the world (Software)" is also getting mass layoffs every time the Rooster calls in the morning.

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Nargg

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@illegal_peanut: It's because of the economy and share prices only. Profits, though lower, are not hurting to the point that this level of layoffs are needed. It's overkill to appease the shareholders. Only to make the "books" look better.

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illegal_peanut

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@nargg: You know something I don't like about this whole "Worshiping the Shareholders" culture we have now. It's that shareholders are stupid, timid, groupthink jackasses. That only looks at numbers and nothing else.

They tend to scuff at any idea that isn't making money every time clock ticks, and worship projects that rain money like the great flood Noah sailed through.

But here is the thing just because there is a lot of investment doesn't mean it's going to go anywhere. You can invest in a product that ends up being a waste of time (Look at the Steam console, Wii U, Xbox Kinect, PS Vita, and Dreamcast). And who suffers in the end? the customers with a whole bunch of highly invested products that we didn't want.

Also, the second thing I don't like about them. Is that even though the customer protests with their wallet, and buy the games they actually want (Non-live service, or Non-battle pass games). Companies still won't listen.

Like there can be a game that gamers want that sells millions of units. But we don't get a sequel and instead, we get some live service game. Because a group of shareholders invested millions more into its development.

It just sucks.

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GamerBum

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Edited By GamerBum

Shame for those loosing their jobs.

Considering Xbox has more games in development than both Ninty and ps combined, yep… let that sink in, the fact that sony is canceling games too is not good at all.

They have zero 1st party until April next year. That’s a longer drought than what Xbox had. Oh well there’s always HiFi Rush, Sea of Thieves etc. I suppose.

But ps gamers don’t buy games right?

Here’s some stats,

1 in 20 ps gamers purchased Helldivers 2. That’s pretty woeful.

And 1/4 of all Helldivers 2 players are on ps and it used to be 1/5. The vast majority are on pc. But we kinda knew already that most ps gamers don’t buy many games apart from COD, FIFA, Madden etc. etc.

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Slannmage

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Edited By Slannmage

AI will save the industry, we'll go back to the 90s where small teams make the AAA games again. Game engines like Unreal will be able to do most of the heavy lifting and that is sort of happening already.

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Slannmage

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They're obviously ditching VR and that is why PSVR2 is getting PC support, they will end of life the hardware and looking at those developers they're mainly studios that have done VR games.

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