Gaming industry insider Jason Schreier is claiming that PlayStation have just made over 900 employees redundant. Apparently, they are also closing down the PlayStation London studio, which was focused on developing VR games.
As great as last year was for gamers (with the GOTY award going to the most deserving title in decades), it was a terrible year for devs. There were layoffs across the entire industry, and this trend has sadly continued into 2024.
In short, a great many companies in the gaming space over-hired during the boon years of Covid, and now the big-wigs are looking to trim the fat. And it's not just happening to failing brands and smaller studios, we've also seen layoffs at some of the most massively successful publishers on the market. Case in point: League of Legends.
There are a few notable exceptions to this. For instance, the CEO of Arrowhead Game Studios (who made Helldivers 2) recently said he wants to avoid over-hiring to prevent exactly this kind of thing from happening. But this is very much an exception to the rule.
Sadly, Sony have now joined the long list of companies who are letting talent go. At least, that's what one of the most reliable sources for gaming industry rumor is claiming.
Jason Schreier: PlayStation Laying Off Around 900 People
In a series of Tweets on February 27, Jason Schreier announced that PlayStation were laying off around 900 members of staff. He also claimed that they were planning to close their London Studio, responsible for several VR games:
BREAKING: PlayStation is laying off around 900 people across the world, the latest cut in a brutal 2024 for the video game industry
— Jason Schreier (@jasonschreier) February 27, 2024
He went on to share that these layoffs also effect some of the most successful subsidiaries, including "Insomniac (Spider-Man), Naughty Dog (The Last of Us), and Guerrilla (Horizon)". Crazy to think that the teams behind such successful games are also suffering, but given the low sales projections for the PS5 this year, perhaps we should have seen this coming.
As we pick our way through the rubble of this bombshell, we're working to confirm which projects have now been cancelled. The first victim is reportedly a "Twisted Metal live-service game" which has now been canned.
Our condolences go out to the nine hundred employees who have been caught up int his. We've reached out to Sony for comment, but they have yet to respond.