It appears to be an unfortunate day for both the workers of PlayStation and the fans. Earlier today, it was reported that the company is letting go of 900 employees from the PlayStation unit. The gaming industry has been in a massive slump since last year with thousands of people losing their jobs.
The fact that PlayStation posted record annual operating revenue on Friday brings into question this mass layoff. As expected, PlayStation’s move is now going to have a ripple effect on their projects as well. After all, games don’t make themselves.
PlayStation Projects to Suffer with Sony’s Sacking Situation
Hermen Hulst, Head of PlayStation Studios, confirmed today that the letting go of such a vast swathe of employees has resulted in the cancellation of some Sony projects. Along with the massive exodus, it was also announced that PlayStation Studios London was closing down entirely. Hermen Hulst went on to state they will be re-evaluating operations after the very clinically described “reduction in our workforce”.
None of these projects have been publicly shared so far, so PlayStation fans will never know what they lost. Hermen said that the cancellation of the games is not due to a lack of passion or talent from the team members, just that shifting market situations sometimes result in great ideas, and apparently people, being shelved. However, when the revenue for PlayStation has been steadily shifting upwards, it’s very disappointing to see people are not secure even in such a company.
Hulst explained that with the PlayStation 5 entering its fourth year, and declared to be in the second phase of its life cycle, the business needs to step back and assess its needs and goals at this time.
With the company now focusing on both PC and mobile as well, a different approach is needed. He said to take on these challenges, PlayStation needs to grow, but letting go of 900 employees seems to be counterproductive to that goal.
The Layoffs have Affected Major PlayStation-Owned Studios
Among the list from the US are Insomniac Games, and Naughty Dog, along with the Technology, Creative, and Support Teams. There are also going to be reductions in Guerrilla (Horizon series creators) and Firesprite. Hulst stated that PlayStation has always valued creative experimentation, and he is deeply saddened to see talented individuals leave the company.
The past year has been a tumultuous time for anyone in the gaming industry. Over 9,000 people lost their jobs last year and PlayStation has now pushed that over the 10,000 mark.
The exact reasons for these layoffs are rarely ever mentioned, but it’s sad to see when it’s a major company like Sony who are posting record highs taking this route. With the gaming industry in such a precarious situation, gaming projects are now under threat. That is the least of the worries though as people scramble to find employment.
What factors do you believe are pushing the layoffs in the gaming industry? Let us know in the comments below.
