Sony plans to lay off around 900 employees, or 8% of workforce, at its PlayStation division, and close its London Studio in the UK

Sony says it's laying off around 900 employees of its PlayStation division, a reduction of its global headcount of around 8 percent.

The Verge 2024-02-27 Tom Warren

Context & Ripple Effects

Sony had already reduced staff at Bungie after the studio missed revenue expectations, making this a broader pattern of cost pressure within Sony’s games operations rather than an isolated closure. The new action also reaches major internal teams: Insomniac, Naughty Dog, and Guerrilla are among the affected studios.

The significance is the breadth of the reset. Sony is cutting across its PlayStation organization and exiting London Studio’s operation, even as its reported PlayStation user base had grown year over year.

First-order effects

About 900 PlayStation employees face job losses, while London Studio’s closure ends that team’s ongoing work in the UK.
Affected first-party studios, including Insomniac, Naughty Dog, and Guerrilla, must operate with reduced staffing and reorganized teams.

Second-order effects

Sony’s remaining studios will have to absorb, delay, or narrow work previously handled by affected teams, increasing pressure to prioritize fewer projects.
The closure removes a PlayStation employer from the UK development market, releasing specialized staff into a more competitive hiring environment.

Third-order effects

If similar cuts continue, PlayStation’s internal network is likely to become more concentrated around fewer studios and projects with clearer commercial priorities.
The pattern points to a more cautious AAA-publisher model in which headcount and studio portfolios are adjusted more quickly when revenue assumptions weaken.

The trend: This is part of a broader shift toward tighter portfolio management and cost discipline across large game publishers after years of studio expansion.

Discussion

Pure Xbox Ben Kerry on x
PlayStation Follows Xbox In Announcing Significant Layoffs For 2024
@broodwars64 @broodwars64 on x
The only thing surprising about these PlayStation layoffs is that Media Molecule, one of Sony's most consistently worthless studios, completely avoided the axe while studios who actually release games got completely shut down.
@kylemsnape Kyle Snape on x
It is so extremely telling that the AAA games industry isn't in a good place when Sony themselves have to announce their layoffs. This type of game development is quickly becoming unsustainable and something has to change.
@jimmyrowe1994 Jimmy Rowe on x
There's a separate tweet where they confirm London Studio is dead, and Firesprite, Guerrilla, Naughty Dog and even Insomniac Games will all face layoffs. Fucking idiots. Recently I've suggested Arrowhead would be acquired by Sony. If I were them I'd tell them to fuck off.
@oliver_drk Oliver Darko on x
Supermassive Games released Until Dawn almost a decade ago. Since then they developed 12(!) other titles and got acquired by Danish investment firm Nordisk. That people wrongly blame Sony for unrelated layoffs shows that Supermassive wasn't able to establish their own identity.
@welladjustednrd @welladjustednrd on x
@Wario64 How does a company who sells as many games and systems as this have to layoff so many employees? Well, SONY the parent companies poor decisions. Madame Webb, poor electronic sales, hemorrhaging costs on games, bad leadership.
@whoregreymon @whoregreymon on x
Outrageous that even three of the most successful and acclaimed AAA studios under Sony can't avoid layoffs.
@leglessgamer Eoghan on x
Not only is 900 employees a horrifically big layoff, but London Studio closing is tragic. That studio means the world to me, and since I was 7 years old, it's been my dream to work for them. This is Sony closing another one of its most creative and innovative studios.
@ethangach @ethangach on x
Sony announces 900 layoffs across PlayStation. Confirms several PlayStation studios are impacted. The possibility of these cuts was previously discussed in materials that came out of the Insomniac hack. https://kotaku.com/... [image]
@lumberjackry @lumberjackry on x
FireSprite Games has it rough. They were formed by ex-Liverpool Studios staff when Sony closed them, some years later Sony acquired the new studio. FireSprite even acquired Fabrik Games and now hit with major layoffs. They had 5 games in development, a few are probably canceled. …
@emceekhan Nathan EmCeeKhan on x
And now Sony's laying off a ton of people. Look, I don't care what people think about the “health” of the industry that “qualifies” them to lay off people when they are making tons of money every quarter. Like that lawyer freak who keeps running around saying layoffs are GOOD.
@jgameruk80 @jgameruk80 on x
If the richest company in the world wasn't immune to industry layoffs what made people think Sony wouldn't also. Industry hurting right now. L
@playstation @playstation on x
Today, Sony Interactive Entertainment initiated a reduction in its global workforce, including teams within PlayStation Studios: https://sonyinteractive.com/ ...
@naughtyndc @naughtyndc on x
Unfortunately, we're pained to report Naughty Dog will be impacted by Sony's ongoing layoffs as announced by Sony CEO Jim Ryan. The extent is currently unknown, and how it will impact the company going forward. [image]
@thejenya @thejenya on x
Between Supermassive and Sony, our industry is bleeding out. Video games needs a union yesterday. 😤 not to mention March is the end of a fiscal quarter so we will no doubt see more layoffs.
@spiintercal @spiintercal on x
Sony clearly are trying to move away from the VR scene. Shutting down a company who had plenty of experience with the platform, layoffs at Firesprite who helped make Call of the Mountain. No upcoming first party VR titles that we know of, not much coming to the platform at all.
@vahn16 Nathan Grayson on x
last month sony announced a movie adaptation of until dawn. this month, 90 layoffs at the studio that made the game
@richontech Rich DeMuro on x
Sony is laying off 900 people and cites changes to the way games are made, developed and distributed... but the other major takeaway is how affected employees are treated in various countries, no doubt due to regulations in the US - you're done today in the UK - we're...
@stephentotilo Stephen Totilo on x
Deep job cuts at Sony PlayStation - 900 workers losing their jobs - London Studio shut down, Firesprite downsized (both had last done VR projects) - Cuts at Guerilla, Insomniac, Naughty Dog - Multiple games cancelled https://sonyinteractive.com/ ...
@tomwarren Tom Warren on x
Sony's PlayStation layoffs will impact Insomniac Games, Naughty Dog, London Studio, Guerrilla, and Firesprite. Sony's head of PlayStation Studios talks of “a different approach and different resources” required for its PC and mobile focus. Details below 👇https://www.theverge.com/…

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