Sony is laying off about 900 people in its gaming division worldwide. The CEO of Sony Interactive Entertainment (SIE) announced this in a letter For employees. This concerns about eight percent of the total number of employees.

In London, the entire Playstation studio has closed and game developer Firesprite is also having to downsize. It is not yet clear how many people will be evicted in the Netherlands, but the game is sure to change at the Guerrilla Games in Amsterdam as well. HorizonPeople have to leave. SIE has branches on all continents.

SIE director Jim Ryan, who is retiring in March, says the sector has changed tremendously and believes the company should be future-proofed. There are more and more games for PC and mobile phones, as well as console games.

He describes the reorganization decision as inevitable. “We must meet the expectations of developers and players and make strides in the development of gaming technology.” He says the company will do everything it can to make the best games again.

Earlier this year, video game and other technology companies cut thousands of jobs. For example, Microsoft announced the layoff of 2,000 employees a month ago, and Riot Games, known for the popular game league of legends, lays off 11 percent of its workforce. Further rounds of layoffs are expected to follow through 2025.

According to experts, this is partly due to the so-called “post-pandemic” correction. There was huge growth during the Corona pandemic, because a lot more people started playing due to the lockdowns.

This number fell again after the pandemic, causing the sector to contract. Moreover, gaming companies suffer from rising costs due to inflation. For example, staff costs have risen and game development has become more expensive.

Experts point out that a lot of young talent is lost due to layoffs. In the long run, this will have a negative impact on the industry, while gaming benefits greatly from young talent.