Japanese tech giant Sony announced it will lay off about 900 employees from its PlayStation division, in another devastating blow to the gaming industry.
The cuts constitute an 8% cut to the company’s total global workforce, affecting studios across the world. One of the biggest parts of the cuts includes the closure of Sony’s U.K.-based London Studio.
PlayStation head Jim Ryan broke the news to employees Tuesday.
“We had to step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and delivering the best experiences possible for our community,” he said.
The company also said several projects being developed by Sony-owned studios will no longer go forward. Affected developers include Naughty Dog, Insomniac Games, Guerrilla Studios and Firesprite Studios.
The news comes at a time of uncertainty for Sony’s PlayStation. Earlier this month, the company announced that its current console, the PlayStation 5, is entering the late stages of its lifespan. The announcement also stated that no first-party PlayStation 5 games would be released in 2024, making it clear the company is more focused on the next project.
The company forecasts sales this year at four million fewer units than last year.
Sony’s layoffs are the latest bad news for the video game industry, after both Microsoft and Unity announced significant cuts to their gaming divisions.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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