Sony Cuts Jobs in Video Gaming Department
Sony Group announced on Tuesday that the firm will be cutting jobs from its video gaming department. According to reports by Bloomberg, Sony will be laying off around 900 people, or roughly 8% of the workforce. The reason for the job cuts arose on the ground of “game companies facing a post-pandemic spending slowdown”. The company, which previously ventured into blockchain-based video games, will see some of its biggest names face the wrath of these layoffs.
Sony Announces Layoffs; Plans Closing of a Group
Sony Group Corp. plans to close a group in London and lay off 900 workers globally, or around 8% of its workforce, in its video game division. According to Bloomberg reports, in a note to employees on Tuesday, Jim Ryan, the president and chief executive officer of Sony Interactive Entertainment, stated:
“After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company.”
Sony announced that three 3 of its most successful subsidiaries, the game developers Insomniac (the company behind Spider-Man), Naughty Dog (The Last of Us), and Guerrilla Games (Horizon), will also be impacted by the layoffs. The virtual reality games and SingStar series are the main draws of Sony’s PlayStation London, are also closing.
The manufacturer of PlayStations previously made significant investments in online games. It is intended for long-term revenue streams known as “games as a service.” However, there is now too much competition in this industry, and many of the games have failed. Spider-Man and The Last of Us online games were just terminated by Sony.
Sony’s Venture into Blockchain Games
The multinational corporation Sony had declared its intention to create a blockchain-based network that aimed to “connect souls across generations.” To establish the network, the corporation had partnered with Singapore-based blockchain technology company Startale Labs. With its headquarters located in Singapore, the joint venture was known as Sony Network Communications Labs Pte. Ltd. Its main goal was to be a creator of the Web3 network which could also facilitate blockchain-based video games.
With a hit to its video gaming department, Sony’s blockchain wing will also be affected.
Sony Not Alone in Layoffs as Boarder Market Grapples with Issues
Tech businesses are still suffering greatly from widespread layoffs, particularly in their gaming sections that grew to fulfill demand during the pandemic. Giant gaming companies are currently shrinking to reflect a slowing sector. According to VideoGameLayoffs.com, layoffs have reportedly affected 3,770 gaming professionals thus far this year. The extensive post-pandemic layoffs at gaming companies have impacted 8,500 employees in 2022 and roughly 10,500 positions in 2023.
Hot Take: Impact of Sony’s Layoffs on the Gaming Industry
The recent announcement by Sony Group Corp. regarding job cuts and the closing of a group in its video game division highlights the challenges faced by the gaming industry as it grapples with a post-pandemic spending slowdown. This move not only affects Sony’s workforce but also has repercussions for its subsidiaries and its foray into blockchain-based games.
As a crypto enthusiast, you may be interested in Sony’s venture into blockchain games through its partnership with Startale Labs. However, with the layoffs in its video gaming department, it remains to be seen how this will impact Sony’s plans for blockchain-based networks and video games.
The gaming industry as a whole has been experiencing layoffs, with many companies downsizing to reflect the changing market dynamics. The pandemic-driven surge in demand for online games has slowed down, leading to a decrease in revenue and the need for cost-cutting measures.
While Sony is not alone in facing these challenges, the impact of its layoffs on its subsidiaries and the closure of its PlayStation London group is significant. Insomniac, Naughty Dog, and Guerrilla Games, which have developed some of Sony’s most successful games, will also be affected by these job cuts.
Moreover, Sony’s investments in online games as a service have faced stiff competition and several failures. The termination of Spider-Man and The Last of Us online games further highlights the difficulties faced by the company in this space.
Looking at the broader market, the gaming industry has seen a significant number of layoffs in recent years. According to VideoGameLayoffs.com, thousands of professionals have been affected by job cuts in the gaming sector. This trend reflects the challenges faced by companies in adapting to changing consumer preferences and market conditions.
In conclusion, Sony’s decision to cut jobs and close a group in its video game division is a reflection of the post-pandemic spending slowdown faced by game companies. As a crypto enthusiast, you should keep an eye on how these developments impact Sony’s blockchain ventures and the overall gaming industry.
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