Active Stocks
Tue Apr 23 2024 15:59:47
  1. Tata Steel share price
  2. 161.10 -0.46%
  1. Tata Motors share price
  2. 986.60 1.34%
  1. NTPC share price
  2. 346.90 1.12%
  1. Bharti Airtel share price
  2. 1,342.30 3.38%
  1. HDFC Bank share price
  2. 1,507.20 -0.34%
Business News/ Companies / News/  Sony cuts 900 jobs in PlayStation units, shuts London Studio amid video game industry challenges
BackBack

Sony cuts 900 jobs in PlayStation units, shuts London Studio amid video game industry challenges

The layoffs will affect about 8% of the division's staff in regions from the Americas to Asia and come days after Sony slashed the annual sales expectation for its PlayStation 5 console.

A Playstation console is displayed at a Best Buy store in San Francisco, California. Sony announced plans to cut 900 jobs in its PlayStation unit. ( Justin Sullivan / Getty Images / AFP )Premium
A Playstation console is displayed at a Best Buy store in San Francisco, California. Sony announced plans to cut 900 jobs in its PlayStation unit. ( Justin Sullivan / Getty Images / AFP )

Japanese giant Sony on February 26 announced plans to cut around 900 jobs within its PlayStation unit and shut down a London-based studio, Reuters reported. The decision comes in response to the ongoing challenges faced by the videogame industry in the aftermath of the post-pandemic slump, it added.

The job cuts will affect around 8 percent of the division's workforce spanning regions from the Americas to Asia. The announcement follows Sony's recent reduction in the annual sales expectation for its PlayStation 5 console

Jim Ryan, the gaming chief at Sony, expressed the inevitability of tough decisions, attributing them to changes in the way the videogame industry develops, distributes, and launches products. Ryan is set to retire in March.

Aligning with Industry Trends

This move aligns Sony with industry counterparts such as Microsoft and Tencent-owned Riot Games, both of which have also undertaken significant layoffs in recent months due to a sluggish recovery in the gaming market.

According to industry tracker Newzoo, the global videogame market saw a modest growth of just 0.6 percent last year, reaching $184 billion. This, however, represents an improvement from the more than 5 percent decline witnessed in 2022.

The repercussions of the layoffs extend to Sony's other studios, including the United States-based Insomniac Games, known for titles such as "Marvel's Spider-Man 2," and Naughty Dog, the studio behind "The Last of Us."

Outlook for PlayStation 5 and Future Releases

Earlier this month, Sony indicated an anticipated gradual decline in unit sales for the PlayStation 5 in the next financial year. Additionally, the company disclosed its decision not to release any major franchise titles in the coming fiscal year. 

Despite challenges, the PlayStation 5 has achieved lifetime sales of over 50 million units since its late 2020 launch, overcoming initial supply shortages caused by the COVID-19 pandemic.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 28 Feb 2024, 06:56 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App