900 employees will be laid off from Sony PlayStation division, London studio will also be closed

Sony’s PlayStation division is facing a tough time, as the company has announced about 8 percent of its workforce to be cut, which will affect around 900 employees. The move affects several globally popular PlayStation studios such as Insomniac Games, Naughty Dog, Guerrilla Games and Firesprite, marking a major shift in Sony’s operational strategy.

Many PlayStation studios will be affected

According to the report, this decision has come at a time when the gaming and technology industry is going through difficult times, many companies are trying to reduce their size. This step of Sony reflects the restructuring within the gaming industry, the direct effect of which is to provide stability while maintaining competition.

PlayStation chief Jim Ryan described the decision as difficult, emphasizing the global impact it would have on the company’s employees, including the studios. The closure of the company’s London studio, best known for PlayStation VR games, reflects a strategy to focus on areas such as PC and mobile gaming platforms with cutbacks in other areas.

This decision comes after the poor sales of PS5, due to which Sony’s stock price saw a significant decline. Despite these challenges, the company is looking to expand by investing in social, online experiences and expanding its game availability beyond normal consoles.

This decision is not much different within the industry. Other companies like Microsoft, Unity, and Discord have recently hit the gaming world with layoffs. Sony’s efforts to streamline its operations and focus on other things should be aimed at keeping up with gaming growth and changing distribution.