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[Dr.brain64]

Damn

UK getting the worst of it.

 

[Jaybe]

Sucks for those impacted. Hope they take the opportunity to remove deadweight at development studios at the same time.

 

[jm89]

It's not even just games. Tech industry as a whole is getting hit again this year with layoffs.

The tech job market is fucked as well in the uk atleast.

 

[Senua]

Sucks

 

[Heisenberg007]

900 is a LOT!

I suspect at least a couple of games to shut down production.

 

[JaksGhost]

and there is this potential studio closing, right?

No they confirmed its London Studios. Last released game was Blood & Truth in 2019. Last thing we heard from them was about their GAAS in 2021/2022.

 

[U n i o n 0015]

Interest rates == "oh crap we have to pay down some of that free money/debt we accrued in the last few years"

When are the MMT theorists going to print that $34 trillion coin?

 

[adamsapple]

Goddamn this is rough.

 

[TVexperto]

already puking after the first sentence "the playstation community means to us..." what shut the fuck up...we are not your community we are paying customers

 

[Svejk]

They wouldn't have to do this if they would drop us the new Astrobot already, ffs.

 

[ManaByte]

Goddamn this is rough.

He knew.

 

[Tal Shiar Agent]

Why?

What's happening in this industry?

Typical capitalist "can't see past the next quarter" bullshit when there was abnormal growth during the pandemic so companies (pretty much all of them in tech) grew and spent irresponsibly.

 

[Jakk]

How is that relevant to a worldwide layoff in an international company?

Don't bother trying to use logic and reason to argue with people like that. They have their own narrative and will stick to it no matter what.

 

[ProtoByte]

It'll be interesting what happens in the next few years. Even before this year's massive round of layoffs going to gamedev wasn't a good idea as a future career path. Now it's an even worse prospect unless you're a huge gamer and desperately want to be in this business.

All things considered, the industry is more stable than it's ever been. This is why this news (alongside general astroturfing and political bs) hits so hard to the uninitiated.

In the 90s all the way up until clout chasing on social media was a thing, major studios and even publishers getting totally shutdown or restructured to being unrecognizable was not huge news, and the contexts behind it were way crazier. Take a look at any of Unseen64's videos about cancelled games. Deus Ex 3 and practically any superhero title especially.

Even compared to other industries right now, this is nothing to be shocked at. As has been said before, the global economy is shit. People were warned in 2020 when the lockdowns and money printing went on without question. Can't stress that enough.

 

[ChorizoPicozo]

No they confirmed its London Studios. Last released game was Blood & Truth in 2019. Last thing we heard from them was about their GAAS in 2021/2022.

they were working on a GaaS, right?

 

[Eiknarf]

The cost of everything is going up, so companies are tightening there belts.
I work in the luxury motor vehicle business and we have seen lay offs too, no one is buying luxury items like they used to.

Here are five things that the middle class will barely be able to afford in 2030:

1. Extended family trips/vacations. Gone will be the days of two week vacations to exotic places
2. Buying new cars (leasing will still be OK)
3. Private school tuition
4. Home ownership
5. Healthcare costs

(look it up if members think I'm making this up)

 

[Chronicle]

BREAKING NEWS!!!!!!!

 

[nush]

Goddamn this is rough.

Ah, DEI hires...

 

[GHG]

Interest rates == "oh crap we have to pay down some of that free money/debt we accrued in the last few years"

Depends on where their debt is held. Japan interest rates are still near 0.

This is likely more a reaction to the global economic situation which is a direct result of sticky inflation.

 

[odhiex]

Rest in peace, London studio

 

[Punished Miku]

He knew.

If you knew your last chance for additional free cookies was almost gone, you might stop by as well.

 

[Angry_Megalodon]

Media Molecule must have an iframes cheat or something.

This is sad but predictable. Many first-party studios have been doing pretty much nothing lately and the new boss is a finance-first type.

On the other hand, we will miss London Studio's GaaS masterpiece

 

[winjer]

The industry is cutting so many jobs, that makes me wonder how many are just being replaced by AI.

 

[Tal Shiar Agent]

Here are five things that the middle class will barely be able to afford in 2030:

1. Extended family trips/vacations. Gone will be the days of two week vacations to exotic places
2. Buying new cars (leasing will still be OK)
3. Private school tuition
4. Home ownership
5. Healthcare costs

(look it up if members think I'm making this up)

There is no such thing as the middle class, it's a fiction foisted upon the lower class by the ruling class to maintain the illusion of social mobility and keep down unrest.

 

[ProtoByte]

Depends on where their debt is held. Japan interest rates are still near 0.

This is likely more a reaction to the global economic situation which is a direct result of sticky inflation.

You'd have to guess they were borrowing in dollars when US interest rates were similar, though? Otherwise they'd get crushed by the exchange rates.

 

[ChorizoPicozo]

The industry is cutting so many jobs, that makes me wonder how many are just being replaced by AI.

right now not as many as they will be in the future.

 

[omegasc]

They scaled massively under Covid in hopes the engagement will last forever.

basically all tech companies did, and have been laying off lots of people. It's not just in gaming.

 

[GHG]

Goddamn this is rough.

What they didn't realise at the time was that he was saying farewell to them.

 

[Little Chicken]

The Abominable PSVR2 literally costing jobs.

 

[ChorizoPicozo]

Ah, DEI hires...

Let's hope this is the vast majority of the layoffs.

 

[Shubh_C63]

I may be way off but Americans practice strategy of capitalising on a risky but fruitful venture with all their budget and manpower in sudden fashion. If struck gold they keep afloat to fight and find another risky but even more fruitful venture. Risk and Reward, not in terms of innovative ideas but to brute force their way with marketing.

East Asian companies may seem to take more risks in terms of ideas but their risks never really extends to risk their budget or long term health. Ofcourse once you need to target a certain audience you kinda need to compete with their budgets, market and ideas also.

 

[Jaybe]

What they didn't realise at the time was that he was saying fairwell to them.

He came by to change the locks

 

[blastprocessor]

Why?

What's happening in this industry?

Too much bloat, cost & lower margins.

 

[Daneel Elijah]

Sad for those affected but it seems that the move will take some time. So hopefully not more than that this year.

 

[efyu_lemonardo]

Well, there it is... No publisher or platform holder will be able to avoid laying people off in 2024, with maybe the exception of Nintendo.

Nintendo is probably growing, if anything. Perhaps slower than expected, but they're definitely not shrinking.

 

[ReBurn]

Interest rates == "oh crap we have to pay down some of that free money/debt we accrued in the last few years"

Interest rates didn't put them in this position, spending did. Everyone was looking at the revenue line after Q3 when they should have been looking at the alarmingly low 5.8% margin coming off the holiday. The push to 25 million consoles last year cost more than they anticipated and this is course correction.

 

[mansoor1980]

meanwhile at bungie.............................

 

[Woody337]

Why?

What's happening in this industry?

Its not just this industry.

 

[Chuck Berry]

Sucks to hear, but not surprising in the slightest. This will be happening all year to all of the biggies. With the exception of maybe Nintendo.

 

[efyu_lemonardo]

Interest rates didn't put them in this position, spending did. Everyone was looking at the revenue line after Q3 when they should have been looking at the alarmingly low 5.8% margin coming off the holiday. The push to 25 million consoles last year cost more than they anticipated and this is course correction.

I think the point is they shouldn't have been borrowing so much during a time where revenue was so high, but rather investing their profits in improving the way they do business. They foolishly expected the growth to continue when that was never a realistic possibility.

 

[Punished Miku]

I blame Madame Web.

 

[yurinka]

When I saw Totoki mentioning they had to address profitability and producivity I thought they were going to have a few firings to cut the fat, but I didn't expect 900 people (8% of their workforce, which was 11250 and now will be 10350) and the proposed closure of London Studio. Sad news.

Fuck sake. Media molecule is a fucking cockroach

All their games have been profitable and most of their team members are juniors or were hired as such, so they are way cheaper to mantain than the average AAA studio.

and there is this potential studio closing, right?

Jimbo says they "propose" to shut shown London Studio (I assume part of their staff will go to Firesprite, XDEV or Media Molecule).

 

[nush]

There is no such thing as the middle class, it's a fiction foisted upon the lower class by the ruling class to maintain the illusion of social mobility and keep down unrest.

 

[Ass of Can Whooping]

 

[GHG]

You'd have to guess they were borrowing in dollars when US interest rates were similar, though? Otherwise they'd get crushed by the exchange rates.

Everything that I've seen online would suggest they tend to do the majority of their borrowing from within Japan:

Sony Procures 210 B. Yen in Joint Loans

Sony Corp. has procured syndicated loans worth 210 billion yen in total from four major Japanese banks and the state-backed Japan Bank for International Cooperation, it was learned Thursday. With no prospects in sight for an end to the novel coronavirus crisis, the Japanese electronics and...

sp.m.jiji.com

I think even after exchange rates it would end up being a cheaper way for them to take on debt considering the BOJ's long standing stance on interest rates.

 

[StueyDuck]

Of course it's schreier he's such a weeny.

In regards to the layoffs... the writings been on the wall for the industry for a while now. Sony won't be the last to do this.

Sucks about studio London though.

But it's also studio "London" one of the most expensive cities in the world to operate out of currently.

Why these companies still exist in San Fran and London and all these expensive places I'm surprised to see are still around (well not studio london).

Move these companies to more feasible locations and an added benefit will be a welcome culture change to most these studios to.

Keep eyes on WB, I feel like they are going to be next with the disappointment that was suicide squad, Gotham knights and MK1 seemingly not setting the world on fire

 

[Wildebeest]

It's expensive to employ people in the UK relative to the talent that's still there.

So what you mean is anyone with any brains has left the UK because the pay is bad for the same work.

 

[JackMcGunns]

To hell?

 

[Team Andromeda]

SONY has been horrible to UK staff, yet again. The fucks

 

[Hohenheim]

Well, there it is... No publisher or platform holder will be able to avoid laying people off in 2024, with maybe the exception of Nintendo.

And FromSoftware.