The gaming industry continues to face a wave of restructuring, and Sony’s PlayStation division is the latest to see significant changes. PlayStation’s Visual Arts studio has been hit with layoffs following internal shifts in game development. Reports indicate that employees working on canceled projects, including a rumored live-service game at Bend Studio, were affected—but the layoffs extend beyond just those projects.
Another Round of Cuts at PlayStation
Earlier this week, employees at PlayStation’s Visual Arts studio in San Diego were informed that their last day at Sony would be March 7. This studio has played a crucial role in supporting first-party PlayStation games, working closely with Naughty Dog on The Last of Us Part I and II remasters. Now, with restructuring in full force, veteran developers are being let go, further shaking confidence in the future of certain PlayStation projects.
Former PSVA project manager Abby LeMaster shared on LinkedIn, “The layoffs today hit hard. PSVA let go of developers with decades of subject matter expertise; talent that will be extraordinarily difficult to recoup.”
This follows Sony’s broader downsizing trend, including the reported cancellation of multiple live-service projects, such as an unannounced God of War spin-off at BluePoint Games. With the expensive failure of last year’s Concord and continued restructuring under new leadership—Hiroki Totoki as Sony’s new CEO and Hideaki Nishino as PlayStation’s sole CEO—the company is clearly tightening budgets.
What Does This Mean for PlayStation Gamers?
Sony’s focus on cost-cutting and outsourcing means fewer big-budget in-house projects. Hermen Hulst, head of PlayStation Studios, acknowledged that PlayStation is reevaluating development strategies to keep costs sustainable. This could mean a shift toward more external co-development, outsourcing, and potentially fewer major exclusives in the short term.
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As PlayStation reshapes its future, gamers will be watching closely to see what’s next. Stay tuned for updates, and don’t forget to grab your PlayStation gift cards to keep gaming, no matter what changes come next!