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Sony's PlayStation Layoffs: 900 Job Cuts Amid Industry Challenges and Console Sales Slowdown

Sony is set to lay off approximately 900 employees at its PlayStation unit and close a studio in London. The decision is attributed to changes in the videogame industry's development, distribution, and product launches. Similar layoffs have been witnessed in the industry, with Microsoft and Tencent-owned Riot Games also downsizing.

In a move that reflects the challenges faced by the videogame industry in the wake of the pandemic, Sony has announced plans to lay off approximately 900 employees at its PlayStation unit and close a studio in London. This decision comes shortly after the company reduced its annual sales expectations for the PlayStation 5 console.


Jim Ryan, the gaming chief at Sony, acknowledged that difficult choices had to be made due to the evolving landscape of the videogame industry. He cited changes in development, distribution, and product launches as contributing factors. Ryan, who is set to retire in March, expressed the inevitability of these tough decisions.


Sony's decision to downsize aligns with similar actions taken by industry giants Microsoft and Tencent-owned Riot Games, both of which have also implemented significant layoffs in recent months. The gaming market has been slow to recover, with the global videogame industry experiencing a mere 0.6% growth last year, reaching a total value of $184 billion. While this represents an improvement compared to the 5% decline in 2022, it still indicates a challenging environment for the industry.


The impact of the layoffs will extend beyond the London studio closure, affecting approximately 8% of the PlayStation division's workforce across regions spanning the Americas to Asia. This includes other notable studios such as Insomniac Games, known for their work on "Marvel's Spider-Man 2," and Naughty Dog, the studio behind "The Last of Us."


Sony's PlayStation 5, despite facing initial supply shortages caused by the pandemic, has achieved impressive lifetime sales of over 50 million units since its launch in late 2020. However, the company anticipates a gradual decline in unit sales starting from the next financial year. Additionally, Sony has revealed that it does not have any major franchise titles planned for release in the upcoming fiscal year.

 
  • Sony is set to lay off approximately 900 employees at its PlayStation unit and close a studio in London.

  • The decision is attributed to changes in the videogame industry's development, distribution, and product launches.

  • Similar layoffs have been witnessed in the industry, with Microsoft and Tencent-owned Riot Games also downsizing.


Source: REUTERS

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