Sony Interactive Entertainment, the parent company of PlayStation, has announced the termination of 900 employees, accounting for 8% of the total workforce. The studio most significantly impacted is London Studio, the developer of the SingStar game series, which is being shut down entirely. Other studios affected include Insomniac Games, Naughty Dog, Guerrilla, and Firesprite, as well as employees in SIE’s central Technology, Creative, and Support departments. The workforce reduction extends globally, affecting employees in North America, Europe, Japan, and the Asia-Pacific region.
SIE cites the need to adjust staffing levels in response to changes in the gaming industry and economic conditions. Additionally, SIE plans to shift its game development strategy from a focus on narrative-driven games for the PS5 to games with a stronger online-social component. This includes expanding to new platforms such as PC and mobile, requiring different skills and resources than before, hence the need to release excess employees to make way for new talent.
In January, Microsoft also laid off 1,900 employees in its gaming business, impacting Xbox, Bethesda, and Activision Blizzard.
TLDR: Sony Interactive Entertainment is letting go of 900 employees, including those from prominent studios like London Studio, to realign its game development strategy towards online-social gaming and expand to new platforms like PC and mobile. This decision is influenced by industry trends and economic factors, similar to Microsoft’s recent layoffs in the gaming sector.
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