Sony Interactive Entertainment (PlayStation) has confirmed another round of layoffs, affecting multiple studios following the cancellation of several live-service games. This latest wave of job cuts adds to the growing concerns over the future of PlayStation’s game development strategy, particularly its focus on live-service titles.
Layoffs Hit PlayStation Studios Hard
Multiple reports indicate that PlayStation’s Visual Arts Studio has been one of the hardest-hit teams, with dozens of employees being let go. The studio, which has historically supported franchises like The Last of Us and Uncharted, was rumored to be working on a new AAA project before being impacted by Sony’s restructuring.
Additionally, Firewalk Studios, the developer behind the recently canceled live-service shooter Concord, has been completely shut down, marking yet another high-profile PlayStation project cancellation.
🛑 Affected Studios & Projects:
- 🔹 Firewalk Studios – Shut down, Concord canceled
- 🔹 Visual Arts Studio – Major staff cuts
- 🔹 *Multiple live-service games canceled or restructured
Why Is Sony Cutting Jobs & Canceling Games?
Sony’s latest layoffs and game cancellations are part of a larger industry-wide trend of cost-cutting and studio restructuring. The company had previously invested heavily in live-service gaming, with plans to launch at least 10 live-service titles by 2026. However, shifting market conditions and the failure of high-profile live-service games have led to PlayStation reevaluating its strategy.
Key Reasons for Layoffs & Cancellations:
📉 Struggles in the live-service market – Many live-service games have failed to retain long-term player engagement.
💰 Financial concerns – Sony is looking to streamline costs after heavy investments in multiplayer projects.
🎮 Refocusing on single-player games – PlayStation may shift back to its AAA single-player roots after fan pushback on live-service initiatives.
Industry-Wide Layoffs Continue
The PlayStation layoffs come amid a brutal period for the gaming industry, with thousands of job cuts across major publishers.
đź’€ Other Major Gaming Layoffs in 2024-2025:
- đź”» Microsoft laid off 1,900 employees in Xbox & Activision Blizzard divisions.
- đź”» EA shut down multiple projects and cut 700+ jobs.
- đź”» Embracer Group canceled several AAA games and closed multiple studios.
The gaming industry is facing uncertainty, and even major companies like PlayStation aren’t immune.
