PlayStation plans to eliminate 900 positions and shutter its London studio

Sony has announced that it will terminate 8% of its global PlayStation workforce, affecting around 900 employees. This decision includes the closure of PlayStation’s London Studio, alongside cuts in the US and Japan.

Jim Ryan, the company’s leader, described the move as “sad news” in an email to staff, acknowledging the difficulty of the day for the company. He stated, “We have concluded that tough decisions have become inevitable,” indicating the necessity of restructuring operations and regretting the impact on talented individuals who have contributed to their success.

These layoffs follow Microsoft’s recent announcement of plans to cut 1,900 jobs in its gaming division, which includes employees from the recently acquired Activision-Blizzard. The closure of the renowned Sony London studio is particularly significant for the UK game development culture, noted Halli Bjornsson, head of UK developer Lockwood Publishing.

Despite the challenges faced by the industry amidst major changes, there’s confidence in the world-class talent and heritage of UK games. Fostered appropriately, this talent can rebound and seize the opportunities ahead.

Sony’s London Studio, established in 2002 through the amalgamation of two London-based studios under the PlayStation brand, has crafted numerous series such as the karaoke game SingStar and the 2000s football title This Is Football. In recent years, the studio has focused on developing exclusive virtual reality (VR) games for Sony’s headset, including VR Worlds and the critically acclaimed shooter Blood & Truth.

According to information on LinkedIn, the studio boasts between 51 and 200 employees and was in the process of developing “an undisclosed online co-op combat game” set in London prior to the announcement.

Sony’s PlayStation 5 has surpassed 50 million units sold worldwide, doubling Microsoft’s Xbox Series X/S sales. In comparison, Nintendo, which introduced its Switch console three years earlier, has sold nearly 140 million units globally.

In its February earnings report, Sony revised its sales expectations downward, anticipating four million fewer console sales by the end of March. Despite a 16% increase in PlayStation’s revenue compared to the previous year, its operating income has declined by a quarter.

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