The video game industry has been hit hard by layoffs recently, with Sony’s gaming division PlayStation announcing this week that it would be cutting approximately 8% of its workforce, equating to about 900 employees. This decision comes as part of an organisational restructure that will impact employees across all SIE regions and several PlayStation studios. The UK will see the closure of PlayStation’s London studio and staff reductions at Firesprite studio. Additionally, well-known studios such as Naughty Dog, Insomniac Games, and Guerrilla Games have also been affected by layoffs, with some unannounced projects being cancelled in the process.

Deck Nine Games and Supermassive Games Layoffs

In another blow to the industry, Deck Nine Games, the developers behind the popular Life is Strange games, have announced that they will be laying off 20% of their staff due to the “worsening marketing conditions” in the video game industry. Deck Nine Games expressed their deep appreciation for the talented developers impacted by this decision and encouraged others to consider hiring them for their skills. Similarly, Supermassive Games, known for titles like The Dark Pictures Anthology and Little Nightmares III, have also announced a reorganisation as a response to the challenging market conditions.

A Pattern of Layoffs in the Industry

These recent layoffs at Sony, Deck Nine Games, and Supermassive Games are part of a larger pattern of downsizing within the video game industry. Companies like Microsoft, Riot Games, and Embracer Group have also made announcements about staff reductions in recent months as they undergo company restructures to adapt to changing market dynamics. The statement from SIE President & CEO Jim Ryan highlights the necessity of making tough decisions to ensure the long-term sustainability of the company and maintain a focus on delivering top-quality gaming experiences to their community.

The challenging landscape of the video game industry has created a ripple effect of job cuts, impacting employees at all levels of various companies. As the industry continues to evolve and face new challenges, such as shifting market conditions and increased competition, it is crucial for companies to adapt and make difficult decisions to remain competitive and successful in the long term. The layoffs at PlayStation, Deck Nine Games, and Supermassive Games serve as a stark reminder of the harsh realities faced by employees in the dynamic and ever-changing world of video game development.


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