Sony Interactive Entertainments (SIE) announcement officially confirming the layoffs of over 900 employees, cancellations, and the closure of a studio was accompanied by a statement from PlayStation Studios. The first-party division of Sonys gaming business revealed the reasons behind some decisions, stating that its exclusive development processes are under review and will undergo changes. What will happen? Hermen Hulst responded.
PlayStation Studios was also impacted by layoffs and cancellations
The controversy of the day was starred by Sony and the decisions in its gaming business. In a statement regarding what is happening at PlayStation Studios, Hermen Hulst explained the reason behind the layoffs and cancellations affecting studios like Naughty Dog, Insomniac, and Guerrilla Games. He also acknowledged that the industry is changing, and it is necessary to review the processes leading to the development of major productions. This includes updating the creative and business model in relation to games as a service and online multiplayer.
Regarding this, the head of PlayStation Studios stated: "PlayStation 5 is in its fourth year, and we are at a stage where we need to take a step back and see what our business needs. At the same time, our industry has undergone a continuous and fundamental shift that affects the way we all create and play games. Delivering the immersive and narrative stories for which PlayStation Studios is known, at the level of quality to which we aspire, requires a reassessment of how we operate. Providing and maintaining online social experiences, allowing PlayStation players to explore our worlds in different ways, as well as releasing games on additional devices such as PC and mobile, requires a different approach and different resources."
[tweet]https://twitter.com/PlayStation/status/1762467941927276771[/tweet]
Projects and the PlayStation Studios model will be reviewed, and nothing is guaranteed
Later, Hermen Hulst revealed that various projects in development at PlayStation Studios underwent evaluation, and in some cases, decisions were made to cancel them. He mentioned that some of these decisions also relate to changes in the industry and business models: "Our philosophy has always been to allow for creative experimentation. Sometimes, great ideas do not turn into great games. Sometimes, a project starts with the best intentions before changes in the market or the industry result in a change of plans. I am deeply saddened to see talented people leave the company. I have a lot of admiration, appreciation, and respect for their work."
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That said, everything indicates that PlayStation Studios will implement changes in the development processes and budget management of its major exclusive productions. According to reports following the hack at Insomniac, Marvels Spider-Man 2 cost over $300 million. Production costs have skyrocketed, and sales do not favor PlayStations business, at least not at the level Sony expects. Some argue that the era of those major releases and the frequency with which they came out on PS4 is behind us, and it seems that PlayStation Studios plans confirm this.
As if that were not enough, PlayStation announced that part of the layoffs means a reduction in staff in technology, creativity, and support areas, meaning that PlayStation Studios projects will have to do more with less.
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