Sony recently announced that it will be laying off approximately 900 employees globally, which amounts to 8% of its PlayStation workforce. This decision includes the closure of PlayStation’s London Studio, which has been a significant part of UK game development culture. The move comes after Microsoft revealed plans to lay off 1,900 employees in its gaming division following the acquisition of Activision-Blizzard.
The CEO of Sony, Jim Ryan, described the decision as “sad news” and mentioned that tough decisions had become inevitable. The restructuring aims to streamline operations and improve efficiency, despite the impact it will have on talented individuals who have contributed to the company’s success over the years.
The closure of Sony’s London Studio is particularly notable, given its history of creating popular game series like SingStar and This Is Football. The studio was also known for developing VR games exclusively for Sony’s headset. Reports suggest that the studio was working on an unannounced online co-op combat game set in London before the announcement.
While Sony’s PlayStation 5 has seen impressive global sales, surpassing 50 million units sold, the company’s operating income has taken a hit. Sony’s earnings report in February indicated that they expected to sell four million fewer consoles by the end of March than initially projected, despite a 16% increase in revenue.
The gaming industry is undergoing significant changes, with key players like Nintendo also seeing massive success with their Switch console. Amidst these challenges, the UK games talent and heritage are considered world-class, providing opportunities for growth and innovation in the industry. As the industry navigates through these transitions, it is essential to support and nurture talent to capitalize on the opportunities that lie ahead.
