A major restructuring has been announced by Sony, a Japanese technology and entertainment giant, affecting its PlayStation gaming division. Management states that the move is aimed at better allocating resources to accelerate growth and strengthen the division’s competitive position on a global scale, as noted on the company blog.
Ultimately, around 900 Sony employees are expected to leave the company, representing roughly 8% of the PlayStation workforce. The reductions will touch both the Tokyo headquarters and regional offices across Europe, North America, and Asia. The most significantly impacted are internal game studios responsible for crafting exclusive PlayStation titles, including Insomniac Games, Naughty Dog, and Guerrilla Games, which have driven flagship experiences for the platform.
In addition, Sony will shutter one of its oldest studios in London, a site focused on developing virtual reality titles for PlayStation VR. That studio was also contributing to a fantasy online action game for PlayStation 5 that had not yet been announced. The closure will also affect Firesprite, a British studio known for delivering AAA experiences powered by Unreal Engine 5.
PlayStation Studios president Hermann Hulst indicated that several games already in development were canceled as part of the restructuring. Specific projects have not been disclosed. Hulst stressed that Sony will maintain its emphasis on multiplayer and social experiences, while continuing to publish story-driven games that will be accessible not only on PlayStation consoles but also on PC and mobile devices.
Hulst added, Our philosophy has always been to enable creative experimentation. Sometimes promising ideas do not translate into successful games.
Industry observers note that this shift aligns with broader industry trends toward platform diversification and cross-platform releases, as Sony seeks to expand its reach beyond traditional console gaming. The company remains committed to collaborations across its studios and partners, aiming to sustain a steady pipeline of content for subscribers and digital storefronts while exploring new monetization models and live-service strategies. This approach mirrors broader market movements toward hybrid experiences that blend single-player storytelling with persistent online elements, available across multiple devices and regions (industry analysis, sources cited).