Sony has reportedly temporarily halted all production of the PlayStation VR2. The company's purported decision to hit pause on PS VR2 manufacturing is said to be a result of the headset's lackluster sales, which caused an inventory buildup.
28.02.2024 - 07:15 / gadgets.ndtv.com / Jim Ryan / Sony
Japan's Sony is cutting about 900 jobs at its PlayStation unit and shutting a studio in London, it said on Tuesday as the videogame industry struggles to recover from a post-pandemic slump.
The layoffs will affect about 8 percent of the division's staff in regions from the Americas to Asia and come days after Sony slashed the annual sales expectation for its PlayStation 5 console.
"We have concluded that tough decisions have become inevitable," said Sony gaming chief Jim Ryan, blaming it on changes in the way the videogame industry develops, distributes and launches products. Ryan is set to retire in March.
The move aligns Sony with the likes of Microsoft and Tencent-owned Riot Games, which have also laid off thousands of employees in recent months due to slow recovery in the gaming market.
The global videogame market grew just 0.6 percent last year to $184 billion (roughly Rs. 15,25,664 crore), according to industry tracker Newzoo, though that was better than a decline of more than 5 percent in 2022.
The layoffs will also affect Sony's other studios, including US-based Insomniac Games that worked on games such as Marvel's Spider-Man 2 and Naughty Dog, the studio behind The Last of Us.
Sony had earlier this month said it expects a gradual decline in unit sales of the PlayStation 5 from the next financial year and that it does not plan to release any major franchise titles in the coming fiscal year.
The device has racked up life-time sales of more than 50 million units since its launch in late 2020, after a slow initial few years when supply shortages caused by the pandemic limited the entertainment conglomerate's device production.
© Thomson Reuters 2024
Sony has reportedly temporarily halted all production of the PlayStation VR2. The company's purported decision to hit pause on PS VR2 manufacturing is said to be a result of the headset's lackluster sales, which caused an inventory buildup.
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Sony has today confirmed around 900 PlayStation employees — or around eight per cent of its workforce — are being laid off in order to «future ready ourselves to set the business up for what lies ahead». As a result of the downsizing, PlayStation's own London Studio is being closed completely and Firesprite will be reduced in size. The staff reductions will also hit Naughty Dog, Insomniac Games, and Guerrilla Games. Some unannounced games have been cancelled.
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Another day, another videogame company jettisoning a large number of people "who have contributed to our success" so as to position themselves for growth in the face of "challenging times". Today it's Sony's turn with the axe: the PlayStation publisher have announced plans to reduce their global workforce by about 8% or 900 people, so as "to future ready ourselves to set the business up for what lies ahead", in the words of outgoing president and CEO Jim Ryan.
Sony Interactive Entertainment has announced today that the corporation will cut around 8% of its workforce, or more than 900 jobs. Also, in the announcement, they stated that PlayStation Studios London will be closing.
Sony has announced mass layoffs across PlayStation Studios with 8% or around 900 people set to be made redundant across their worldwide studios. This will include the complete shutdown of London Studio, while Naughty Dog, Insomniac and other studios are affected as well.