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News PlayStation laying off 900 staff worldwide (8%) - Insomniac, Naughty Dog, Guerilla, Firesprite affected, Projects Cancelled, shutting London Studio
- Thread starter aus89
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A lot of us called this after the PS sale results, but damn 900 is still a mind blowing number.
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The problem was their profit margin was dangerously low (like 8% iirc), and they missed ps5 sales expectations by quite a bit. This was sadly the expected outcome.
BlackthornOrion
#theprocessbroke
Well that sucks for 900 people
(also sorta a side point, but I'm really wondering why they even bothered doing a PSVR2. Their heart never seemed into it, and now apparently they're closing one of the few studios they had that was actually making VR games)
(also sorta a side point, but I'm really wondering why they even bothered doing a PSVR2. Their heart never seemed into it, and now apparently they're closing one of the few studios they had that was actually making VR games)
korok
Moblin
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You know, after so many doom for the delay of Switch 2 (myself included), this makes me take some perspective. A four-month delay of a console is the less shitty thing that's happening in the industry right now. Nintendo must follow their own path and take the time they need to ensure that they release a healthy platform and keep growing sustainably. As crazy as it sounds, they are a lighthouse in the darkness right now, lol.
Horror Kid
Bob-omb
Very bad.
What state is this industry in...?
While I am annoyed to have to wait for Switch 2 even longer now, you really can't fault Nintendo wanting to get the transition absolutely right.
Up until now, it seems like they figured this out better than others.
What state is this industry in...?
While I am annoyed to have to wait for Switch 2 even longer now, you really can't fault Nintendo wanting to get the transition absolutely right.
Up until now, it seems like they figured this out better than others.
ItWasMeantToBe19
Manakete
Hey fuck off with the London Studios stuff.
They set these guys up to fail, they had no chance of making a AAA GaaS game.
They set these guys up to fail, they had no chance of making a AAA GaaS game.
revenue doesn't matter that much when they had a 6% profit margin. unfortunately layoffs are the quickest way to improve that.
yikes. he had to know at that point, no?
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Of course he did, he's got one foot out the door so what does he care.
Announcement from Hermen Hulst
OP
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"Today, Sony Interactive Entertainment initiated a reduction in our workforce – including within PlayStation Studios – and I wanted to talk about the impact that will have.
These decisions have been extremely difficult, but they are necessary, and I think it’s important to be transparent:
The US based studios and groups impacted by a reduction in workforce are:
Our goal at PlayStation Studios has always been to make the best games for PlayStation fans, and our global community of studios represent some of the most creative and talented teams within the gaming industry.
PlayStation 5 is in its fourth year, and we are at a stage where we need to step back and look at what our business needs.
At the same time, our industry has experienced continuing and fundamental change which affects how we all create, and play, games.
Delivering the immersive, narrative-driven stories that PlayStation Studios is known for, at the quality bar that we aspire to, requires a re-evaluation of how we operate.
Delivering and sustaining social, online experiences – allowing PlayStation gamers to explore our worlds in different ways – as well as launching games on additional devices such as PC and Mobile, requires a different approach and different resources.
To take on these challenges, PlayStation Studios had to grow. We have brought brilliant and successful Studios into our family. We have invested in new technology and partnerships. We have recruited talent from across our industry and beyond.
But growth itself is not an ambition. PlayStation Studios is committed to continually discovering ways to work together; collaborating and combining our efforts to ensure that we are able to craft games that push the boundaries of play and deliver what you expect from us.
We looked at our studios and our portfolio, evaluating projects in various stages of development, and have decided that some of those projects will not move forward.
I want to be clear that the decision to stop work on these projects is not a reflection on the talent or passion of team members.
Our philosophy has always been to allow creative experimentation. Sometimes, great ideas don’t become great games. Sometimes, a project is started with the best intentions before shifts within the market or industry result in a change of plan.
I am deeply saddened to see talented individuals leave the company. I have so much admiration, appreciation and respect for their work.
PlayStation Studios will continue to be a creator-led organization driven by evolving our beloved franchises and bringing new gameplay experiences of the highest quality to our fans.
Thank you all for your continued support."
https://sonyinteractive.com/en/news/blog/an-important-update-from-playstation-studios/
These decisions have been extremely difficult, but they are necessary, and I think it’s important to be transparent:
The US based studios and groups impacted by a reduction in workforce are:
- Insomniac Games, Naughty Dog, as well as our Technology, Creative, and Support teams
- That PlayStation Studios’ London Studio will close in its entirety;
- That there will be reductions in Guerrilla and Firesprite
Our goal at PlayStation Studios has always been to make the best games for PlayStation fans, and our global community of studios represent some of the most creative and talented teams within the gaming industry.
PlayStation 5 is in its fourth year, and we are at a stage where we need to step back and look at what our business needs.
At the same time, our industry has experienced continuing and fundamental change which affects how we all create, and play, games.
Delivering the immersive, narrative-driven stories that PlayStation Studios is known for, at the quality bar that we aspire to, requires a re-evaluation of how we operate.
Delivering and sustaining social, online experiences – allowing PlayStation gamers to explore our worlds in different ways – as well as launching games on additional devices such as PC and Mobile, requires a different approach and different resources.
To take on these challenges, PlayStation Studios had to grow. We have brought brilliant and successful Studios into our family. We have invested in new technology and partnerships. We have recruited talent from across our industry and beyond.
But growth itself is not an ambition. PlayStation Studios is committed to continually discovering ways to work together; collaborating and combining our efforts to ensure that we are able to craft games that push the boundaries of play and deliver what you expect from us.
We looked at our studios and our portfolio, evaluating projects in various stages of development, and have decided that some of those projects will not move forward.
I want to be clear that the decision to stop work on these projects is not a reflection on the talent or passion of team members.
Our philosophy has always been to allow creative experimentation. Sometimes, great ideas don’t become great games. Sometimes, a project is started with the best intentions before shifts within the market or industry result in a change of plan.
I am deeply saddened to see talented individuals leave the company. I have so much admiration, appreciation and respect for their work.
PlayStation Studios will continue to be a creator-led organization driven by evolving our beloved franchises and bringing new gameplay experiences of the highest quality to our fans.
Thank you all for your continued support."
https://sonyinteractive.com/en/news/blog/an-important-update-from-playstation-studios/
SoldierDelta
Designated Xenoblade Loremaster
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I don't think it should come as a surprise at this point honestly. This is just going to be a part of the status quo until the AAA space can get their shit together.
That said, my heart goes out to the people effected by the layoffs, especially to the people working at London studio and their unannounced live-service. It genuinely sucks to have worked on something for it to never really see the light of day.
That said, my heart goes out to the people effected by the layoffs, especially to the people working at London studio and their unannounced live-service. It genuinely sucks to have worked on something for it to never really see the light of day.
ItWasMeantToBe19
Manakete
AT FUCKING GUERRILLA?
Like, let's ignore that Naughty Dog and Insomniac are your two defining studios in your entire history.
Guerrilla is not a California studio.
Guerrilla is making two major games at once.
??????
The only thing I can think of for Guerrilla is that they're cancelling the Horizon Monster Hunter co-op spinoff.
Like, let's ignore that Naughty Dog and Insomniac are your two defining studios in your entire history.
Guerrilla is not a California studio.
Guerrilla is making two major games at once.
??????
The only thing I can think of for Guerrilla is that they're cancelling the Horizon Monster Hunter co-op spinoff.
Even Insomniac, Guerilla and Naughty Dog were hit. Like, you can do so much right and the megacorp will just spit you out like chewed up gum.
They already have pipeline problems and they're still firing creatives and workers. PSVR2 is going to get even less support because they're cutting down their goddamn VR studio.
I'm sorry, but it's a clusterfudge.
They already have pipeline problems and they're still firing creatives and workers. PSVR2 is going to get even less support because they're cutting down their goddamn VR studio.
I'm sorry, but it's a clusterfudge.
BlackthornOrion
#theprocessbroke
Correct me if I'm wrong, but it looks like every studio confirmed to be affected was also attached to one of Sony's planned live-service games
ItWasMeantToBe19
Manakete
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For sure, I think the industry as a whole is starting to get cold feet about throwing dozens of live service games at the wall and hoping one sticks. Games are costing too much money to have giga flops like that. Even if 1 sticks it won't offset the losses on the 5 that didn't anymore.
ItWasMeantToBe19
Manakete
London Studio had been moved off VR games to make live service multiplayer action games before this.
Aether
Tingle
Yeah...the dev cost increase with higher fidelity from 4 to 5, and the miss interpreted hype for ps5 in the beginning (chip shortage, lockdowns) lead them to here, where the timeline for many people just doesn't look that hype, and costs for entering the platform are still steep.
Hope those people don't need long to find good jobs.
Hope those people don't need long to find good jobs.
Jim Ryan e-mail to staff
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The PlayStation community means everything to us, so I felt it was important to update you on a difficult day at our company. We have made the extremely hard decision to announce our plan to commence a reduction of our overall headcount globally by about 8% or about 900 people, subject to local law and consultation processes. Employees across the globe, including our studios, are impacted.
These are incredibly talented people who have been part of our success, and we are very grateful for their contributions. However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead. We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming, so we took a step back to ensure we are set up to continue bringing the best gaming experiences to the community.
Below I’ve shared a copy of the email I sent out to the company this morning to provide more context on our thinking. We deeply appreciate support and understanding from the PlayStation community as these decisions are very difficult. Please rest assured that our plans for reorganizing and streamlining are so we can continue to deliver the best gaming experiences possible.
Team,
It is important to provide you with updates about the business as often as possible. Today, I am writing with sad news. Through discussions over the past few months about the evolving economic landscape, changes in the way we develop, distribute, and launch products, and ensuring our organization is future ready in this rapidly changing industry, we have concluded that tough decisions have become inevitable. The leadership team and I made the incredibly difficult decision to restructure operations, which regrettably includes a reduction in our workforce impacting very talented individuals who have contributed to our success.
After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company. 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. The goal is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us.
I want to be as transparent as possible with you, our partners, and our community about what this means:
For those who will be staying at SIE: We will be saying goodbye to friends and colleagues that we cherish during this process, and this will be painful. Your resilience, sensitivity, and adaptiveness will be critical in the weeks and months to come.
This will not be easy, and I am aware of the impact it will have on wellbeing. Affected employees will receive support, including severance benefits. While these are challenging times, it is not indicative of a lack of strength of our company, our brand, or our industry. Our goal is to remain agile and adaptable and to continue to focus on delivering the best gaming experiences possible now and in the future.
Thank you for your understanding during this difficult period. Please be kind to yourselves and to each other.
Jim
https://sonyinteractive.com/en/news/blog/difficult-news-about-our-workforce/?sf271923331=1
These are incredibly talented people who have been part of our success, and we are very grateful for their contributions. However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead. We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming, so we took a step back to ensure we are set up to continue bringing the best gaming experiences to the community.
Below I’ve shared a copy of the email I sent out to the company this morning to provide more context on our thinking. We deeply appreciate support and understanding from the PlayStation community as these decisions are very difficult. Please rest assured that our plans for reorganizing and streamlining are so we can continue to deliver the best gaming experiences possible.
Team,
It is important to provide you with updates about the business as often as possible. Today, I am writing with sad news. Through discussions over the past few months about the evolving economic landscape, changes in the way we develop, distribute, and launch products, and ensuring our organization is future ready in this rapidly changing industry, we have concluded that tough decisions have become inevitable. The leadership team and I made the incredibly difficult decision to restructure operations, which regrettably includes a reduction in our workforce impacting very talented individuals who have contributed to our success.
After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company. 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. The goal is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us.
I want to be as transparent as possible with you, our partners, and our community about what this means:
- We envision reducing our headcount by about 900 people, or about 8% of our current workforce
- There will be impact for employees across all SIE regions – Americas, EMEA, Japan, and APAC
- Several PlayStation Studios are affected
- For those of you in the US, all impacted employees will be notified today.
- In the UK, it is proposed:
- That PlayStation Studios’ London Studio will close in its entirety;
- That there will be reductions in Firesprite studio;
- And that there will be reductions in various functions across SIE in the UK.
- In Japan, we will implement a next career support program. Details will be communicated separately.
- In other countries, we will begin conversations with those who are potentially at risk or impacted as a result of this proposed course of action.
For those who will be staying at SIE: We will be saying goodbye to friends and colleagues that we cherish during this process, and this will be painful. Your resilience, sensitivity, and adaptiveness will be critical in the weeks and months to come.
This will not be easy, and I am aware of the impact it will have on wellbeing. Affected employees will receive support, including severance benefits. While these are challenging times, it is not indicative of a lack of strength of our company, our brand, or our industry. Our goal is to remain agile and adaptable and to continue to focus on delivering the best gaming experiences possible now and in the future.
Thank you for your understanding during this difficult period. Please be kind to yourselves and to each other.
Jim
https://sonyinteractive.com/en/news/blog/difficult-news-about-our-workforce/?sf271923331=1
Wait, so they made plans for live service and now they're firing the people that were supposed to make them? What a travesty.
SoldierDelta
Designated Xenoblade Loremaster
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I had discussions with a few others, but the general guess is that VR and Live-Service titles are being scaled back. The former seems to be a decreasing priority for Sony while the latter has yielded few great results while also canning what would be the "standard" for them with Last of Us Factions and Insomniac's Live-Service.
What's fucking hysterical though is that this comes out after Helldivers 2, a game that is good and fun and doesn't treat players like marks.
ItWasMeantToBe19
Manakete
Yeah, they're seemingly closing most of the live-service studios they opened or pivoted their devs to.
They seem to be giving up on live service titles as they're taking too long to make.
Which like... Are the Sony execs stupid? These games are really hard to make. Was pretty easy to see this back in 2020 before you moved your studios in this direction.
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These layoffs were already decided long before HD2 was a big hit. From the insomniac giga leak we know people at Insomniac were discussing what teams to lay people off from months ago.
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It's one thing to learn "900 people were laid off". It's another to look at an entire room of smiling, hopeful, proud people and know that their existing work's getting thrown out, and they're now in financial turmoil as they suddenly scramble for work.
Kartina
theprocessbroke
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Welcome to the future of the industry I guess, you get big profits and when they become impossible to surpass you just lay off people to please shareholders, who cares about the future and the morale of you workers when you can say you've hit record breaking numbers. And of course this is a short term solution that will come back to bite them in the ass. This is sickening.
You know, I'm of the mind that execs would do better to keep their message to their laid-off workers brief and to the point, rather than pour out paragraphs to ensure us what empathetic people they are. But if someone is gonna do the whole "explain the inevitability of my decision" shpiel, at least have enough respect for those reading to actually explain yourself, not just throw out unconnected lines like these as a defense where there's no logical link made between how firing people is gonna improve the making of "immersive, narrative-driven stories that Playstation Studios is known for, at the quality bar that we aspire to".
Supposedly you spend months agonizing over this reality. Now is the time to share the insights all those long hard discussions generated. Or did the board-room just repeatedly throw these same empty phrases at each other, too?
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OP
OP
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Executive decisions = employee consequences as Jim Ryan jumps away in his golden parachute
BlackthornOrion
#theprocessbroke
I know it's not a magic bullet, but maybe if they hadn't gone all in on "delivering immersive narrative driven stories" being what they're known for and had kept making some smaller scope/smaller budget games, they wouldn't be in such (apparently) dire straits
ItWasMeantToBe19
Manakete
Almost all of these layoffs are related to trying to make multiplayer titles to take on Fortnite, Monster Hunter, Call of Duty, etc.
Beanstar40
Chain Chomp
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Good bye new ip’s and hello the last of us 3, 4, 5, and 6 :/
Ricimer
Tektite
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Nintendo's strategy of not prioritizing graphics and fostering IP quality that can sell at any budget sure is looking smart right now...
OP
OP
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I'd say this is unclear at this point. Insomniac are not working on a MP game as far as anything that was in the leaks, Naughty Dog had already cancelled their MP game (though they may be laying off developers who were from that team)
ItWasMeantToBe19
Manakete
The budgets for these games are exploding due to scope creep and constant play testing to try to match Fortnite which is nearly impossible.
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Fuck Sony wholeheartedly for this. It is especially callous considering that Insomniac are one of Sony's only functioning studios. They are the only studio that is able to put out a steady clip of games, and their current generation is basically carried by them. And they even put in for a proposal of shorter, cheaper to make games for the health of the studio. The fact that Sony didn't do that, then they ended up being laid off anyway is cold.
Sony is not the leading platform holder, Nintendo is.
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Lol I knew that was coming. Ok, one of the leading platform holders
