Sony Interactive Entertainment has faced challenging times recently, starting the year with over 900 job cuts and game cancellations. In July, Sony eliminated several positions at its Destiny studio, Bungie, and announced a reorganization effort. Then in August, Sony's Firewalk team launched a multiplayer FPS called Concord, only to shut it down shortly after and offer refunds, leading to the studio's permanent closure after reportedly spending over $200 million.
In an interview with Variety, SIE co-CEO Hermen Hulst addressed these drastic measures, stating they were part of the company's effort to maintain a "sustainable business." He emphasized the importance of resource planning and ensuring a sustainable operation. Hulst acknowledged the personal impact on employees but defended the necessity of these decisions.
Hulst also noted that the PlayStation Studios division has actually expanded significantly in terms of employment over the past five years, attributing this growth to organic expansion and mergers and acquisitions. His defense of Sony's major cuts echoes similar statements made by Microsoft Gaming CEO Phil Spencer regarding Xbox's business shifts, which included over 2,500 layoffs and numerous studio closures.
2024 has been another tough year for layoffs in the video game industry, with estimates suggesting over 11,000 layoffs across various companies. Former PlayStation executive Chris Deering commented on the cuts, suggesting they are influenced by broader macroeconomic conditions, though his remarks were criticized for being insensitive.
The Communication Workers of America (CWA) recently criticized Sony's decision to close Firewalk and shut down Concord, lamenting the decisions made by "highly insulated video game CEOs."
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