In a recent blog post, Sony Interactive Entertainment announced they’d be laying off 900 employees across their entire gaming division. The layoffs have effected people working at Insomniac, Naugty Dog, Guerilla, and more. Further, an unannounced Twisted Metal live service game has also been quietly cancelled by Sony.
Over the last few months, several major companies have laid off hundreds, if not thousands, of workers from across their entire gaming division. Examples include Microsoft, Bungie, Embracer Group, Behaviour Interactive, Riot Games, Sega, and more. Unfortunately, the amount of layoffs across the industry will likely increase as the year continues.
Sony Interactive Entertainment Confirms Layoffs Across Entire Gaming Division
In a recent PlayStation blog post, the company confirmed that they have laid off several employees across their entire gaming division. The affected companies are Insomniac, Naughty Dog, Guerilla, and Firesprite. Further, PlayStation’s London Studios, known for their work on the Eye Toy peripheral as well as the EyePet, SingStar, and PlayStation VR Worlds games, has been closed down in its entirety.
Additionally, according to Bloomberg, an unannounced Twisted Metal live service game has been cancelled. Firesprite would’ve developed the game. It is now currently unknown what their next project is. A separate post from Jim Ryan confirms that impacted employees in the US will be notified today of their immediate departure from the company, while UK, Japan, and other countries where developers are affected will be given extended time to further be consulted on their next steps as well as instructed on a “proposed course of action.”
The reason for the layoffs is due to Sony’s attempt at a “re-evaluation of how we operate.” It is likely also because the company wants to step away from their recent failed live service projects. Despite some recent blunders, Sony has had a very successful few months. In October, Insomniac delivered the fastest-selling PlayStation game of all time in Marvel’s Spider-Man 2. Yet, due to recent leaks, the game still didn’t meet the expectations set by its massive budget.
Only time will tell if Sony’s attempts to re-evaluate their development structure will work out or if it will only lead to more developers being laid off.
