Like Microsoft, Sony set to fire 900 PlayStation Team members after failing to meet sales target

In response to a disappointing earnings report and a failure to meet sales expectations for the PlayStation 5 console, Sony Corporation has announced significant layoffs within its PlayStation division.

The decision comes on the heels of a turbulent period for the company, marked by a staggering $10 billion drop in its stock value.

Sony's PlayStation chief, Jim Ryan, delivered the sobering news, via blog post last month stating,

The layoffs, representing approximately 8% of Sony's global workforce, and will spread across renowned PlayStation studios such as Insomniac Games, Naughty Dog, Guerrilla Games, and Firesprite.

“This decision was not taken lightly, but is necessary to ensure the long-term viability and success of our PlayStation division,” Ryan emphasized.

Additionally, Sony confirmed the closing down of its PlayStation Studio in London, renowned for its expertise in virtual reality game development.

This move follows the company's recent announcement of plans for a PC adaptation of its PlayStation VR2 headset.

In recent years, the gaming industry as a whole has faced challenging times, with Microsoft announcing similar layoffs affecting around 1,900 employees across its Xbox and Activision Blizzard divisions earlier in January.

Unity and Discord, key players in the gaming landscape, also faced workforce reductions, with Unity slashing 25% of its employees and Discord cutting 17% of its workforce during the same month.