Additional PlayStation Layoffs Announced by Software Development Team Member

Recent Layoffs Impact PlayStation’s Software Development Team

The gaming industry continues to face upheaval as layoffs have recently affected a PlayStation studio, specifically its software development team. Oscar Diaz, a Senior Design Technologist at PlayStation, who joined the company in October 2020, shared this unfortunate news on his Mastodon account. Diaz contributed to various projects such as the PS5, PSVR2, and the PlayStation App, and expressed his dismay about the staff cuts.

Most of my team was just laid off from PlayStation. It was a dream to get to work with Sony on the platform I’d grown up playing since the PS1 and contribute to the PS5, Portal, PSVR2, PS App, and future consoles. If you know anyone who needs an engineer experienced with native console UI, feel free to reach out.

The recent job cuts add to a troubling trend within Sony’s gaming division. Notable layoffs occurred at Sony Bend following the cancellation of a live-service project, alongside a similar fate for a God of War live-service game in development at Bluepoint. Previously, the closure of Firewalk Studios, renowned for their live-service game Concord, and Neon Koi, which aimed to port PlayStation franchises to mobile, further spotlighted the industry’s challenges. Earlier in 2024, PlayStation announced an 8% reduction of its workforce, resulting in the shutdown of its London studio and layoffs at prestigious teams including Guerrilla Games, Naughty Dog, and Insomniac Games. Additionally, in July 2024, Bungie, now a subsidiary of PlayStation, reduced its workforce by 220 employees.

An Industry-Wide Challenge

The situation at PlayStation reflects broader trends affecting the gaming industry. The year 2024 proved to be disastrous for many companies. Reflector Entertainment faced layoffs following the underperformance of their title Unknown 9: Awakening, while Phoenix Labs, the studio behind Dauntless and Fae Farm, significantly downsized. BioWare has shrunk its workforce to fewer than 100 employees following the lackluster performance of Dragon Age: The Veilguard, and Ubisoft reduced its staff by 185, which included closing their Leamington studio.

These layoffs are indicative of a challenging environment for game developers, as studios grapple with shifting consumer preferences and the evolution of gaming technology. As we move into 2025, the outlook remains uncertain, prompting discussions about the future sustainability of game studios and the impact on creative talent.

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