Sony plans to reduce its PlayStation division by approximately 900 jobs, which accounts for around 8% of its global workforce. This move follows a trend within the technology and gaming sector of companies announcing layoffs.
The restructuring is attributed to industry changes, and the job cuts will affect regions including the Americas, Japan, Europe, the Middle East, Africa, and the Asia Pacific region.
Naturally, Sony wouldn’t engage in self-reflection regarding the actions that have contributed to their current predicament, aligning them with many other gaming corporations. It’s widely acknowledged that Sony’s latest console, the PlayStation 5, has been a significant failure.
Costs related to hardware development and production have escalated beyond control over the past few generations.
Accompanied by the trend of companies like Microsoft, Sony, and the Embracer Group prioritizing acquisitions over sustainability, Sony’s arsenal of first-party games has incurred astronomically high development costs. For instance, Naughty Dog’s The Last of Us Part 2 alone cost over $200 million to develop, along with other major titles like Horizon Forbidden West, God of War Ragnarok, and Marvel’s Spider-Man 2 costing as much if not even more.
As it turns out, spending hundreds of millions of dollars to develop a video game isn’t financially viable in the long term, as Sony’s declining list of “exclusives” either barely break even or potentially lose money despite millions of copies having been sold of a particular game, this is why Sony are investing heavily into expanding the PlayStation brand, away from the PlayStation console itself by pushing its library of games onto the PC platform, as console sales alone aren’t justifying the costs of production.
As hardware costs continue to rise and sales figures remain on par with the previous generation, which was initially deemed a failure during its early years, Sony is bleeding capital like many other major players in the video game industry. Rather than investing in lower-budget experiences that cater to their core audience, they opt to allocate exorbitant sums towards cinematic titles.
Hence why Sony have taken drastic measures by scrapping projects stuck in developmental hell, such as Naughty Dog’s live service online multiplayer game centered around The Last of Us franchise, which was announced over three years ago with subsequent delays pushing the project back, likely due to the fact that Naughty Dog only knows how to produce interactive movies rather than action focused video games.
The PlayStation Studio in London will be shut down completely, and there will also be cuts at Firesprite studio. Furthermore, reductions will occur in various departments across Sony Interactive Entertainment in the UK, the company announced. Severance benefits will be offered to affected employees.
To compound the issue, purported projects in progress, such as a live service Twisted Metal title, were in the works, which was likely destined for failure. This game was reportedly being developed by Firesprite, who took over the project from Lucid Games and thankfully the project has been canceled.
Sony Interactive Entertainment has been experiencing a decline for years, and Sony’s responsibility for this failure cannot be overstated. Particularly egregious is their treatment of Japanese consumers and developers, exemplified by the relocation of SIE’s headquarters to California.
Throughout the PS4’s lifespan, Sony has consistently imposed strict censorship practices on Japanese games, specifically to cater towards a globalized Western audience.
Global economies are in disarray, and ESG hedge funds are collapsing rapidly. It’s no longer viable for gaming corporations, or any corporations for that matter, to simply rely on pushing half-hearted progressive products at a loss to generate revenue.
Reality is setting in as these companies face the prospect of making drastic decisions. They must either pivot towards producing products that consumers actually desire, with a viable profit margin, or continue with the status quo.
By prioritizing virtue signaling about diversity and inclusivity, these companies will inevitably issue massive layoffs in an attempt to avoid excluding anyone, they will have to fire everyone instead.
