Sony Cuts 900 Jobs from PlayStation Division

Sony Cuts 900 Jobs from PlayStation Division

Sony’s entertainment division, the creator of the widely known PlayStation, has made a significant announcement this Tuesday. The company has decided to lay off 900 employees, which makes up 8% of its entire workforce. This decision comes amidst the “immense changes” that are currently transforming the entertainment sector.

The Sony Entertainment company, headquartered in San Mateo, California, released a statement on Tuesday. The company acknowledged that the decision was extremely challenging, as it affected many talented individuals who have contributed significantly to the company’s successes. The company expressed its gratitude to these employees.

The layoffs will affect offices and studios worldwide, with the process adhering to the legal procedures in place at each location.

Sony’s corporate statement clarified that the layoffs are a response to the company’s need to “take a step back”. This will enable them to better understand how they can meet the expectations of developers and players while continuing to drive the future of gaming technology.

The video game industry, like all tech-related industries, is currently experiencing turbulence. As reported by the specialized media outlet Wired, there were 6,500 layoffs in the sector in 2023. These layoffs were carried out by major industry players such as Amazon Games, Ubisoft, and Epic Games, among others.

Wired identified several potential causes behind this wave of layoffs. These include uncontrolled growth during the Covid pandemic, the emergence of artificial intelligence (AI), and increased union activity within these companies.

Meanwhile, record sales

Mid-month, Sony announced that it had sold over 50 million units of its PlayStation 5 video game console, three years after its launch. “Thanks to the support of PlayStation fans around the world, the PS5 console has enjoyed strong momentum this year, driven by a series of very popular games,” Sony declared in a statement.

The successful launch of games like “Marvel’s Spider-man 2”, which sold 2.5 million copies in its first 24 hours in late October, along with “Baldur’s Gate 3” and the horror-survival game “Alan Wake 2”, supported these sales.

The manufacturing and shipping of the console, which was launched in November 2020 amidst the Covid-19 pandemic, faced challenges due to a global shortage of semiconductors and issues in the global supply chain, largely due to health measures in many countries.

“We are delighted to see that this is the first time since the launch of the PS5 that we have a full inventory of consoles for the holidays, making it possible for anyone who wants one to get one,” said Jim Ryan, president of Sony’s video game division, in the statement.

This new milestone for the Sony console was reached 161 weeks after its launch, just one week more than the 160 weeks it took for the PlayStation 4, launched in 2013, to surpass 50 million units sold, according to data from the Financial Times.

Over its entire life cycle, the PS4 sold more than 117 million units, according to the specialized site VGChartz.

When considering all brands, the PlayStation2 console holds the record as the best-selling console of all time, with more than 158 million units sold.