Sony Interactive Entertainment has faced a challenging period, starting the year with over 900 layoffs and game cancellations.
As the months rolled on, changes continued: in July, they let go of many employees at Bungie and started a reorganization there; by August, the Firewalk team launched Concord, a multiplayer FPS, but it was quickly closed, refunded, and the studio shut down after reportedly spending more than $200 million. SIE co-CEO Hermen Hulst, in a chat with Variety, explained these actions as part of making sure the company remains strong and stable.
He expressed, “I will say a few things on that. It’s our duty to look at our our resource planning, and make sure that we run a sustainable business,” adding that knowing the people affected personally makes such decisions hard. Yet, he acknowledged, “But yes, we’ve had some layoffs.”
Interestingly, Hulst mentioned that PlayStation Studios has actually grown in staff size compared to five years ago, attributing this to aggressive hiring and strategic mergers and acquisitions.
Reminds us of Phil Spencer at Xbox, doesn’t it? His defense for Microsoft’s cuts—over 2,500 layoffs and closing studios—was similar. He argued in March that these actions were crucial for Xbox’s profitability, especially after buying Activision Blizzard.
It seems 2024 is just as harsh as 2023 for video game workers, with an estimated 11,000 layoffs across companies like Sony, Microsoft, and Ubisoft.
One former PlayStation exec, Chris Deering, suggested the layoffs were due to larger economic factors, not just corporate greed. However, his comment about laid-off workers “going to the beach for a year” didn’t sit well with many.
The Communication Workers of America (CWA) has slammed Sony for shuttering Firewalk and Concord, criticizing decisions made by “highly insulated video game CEOs.”
