The gaming industry has faced significant challenges over the past year, marked by numerous layoffs affecting both major and indie developers as well as publishers. Unfortunately, the trend continues into 2024 with announcements from industry giants such as Embracer, Microsoft, and Unity of large-scale employee layoffs.

Now, it’s Sony’s turn to make headlines again, following previous layoffs at studios like Bungie and Naughty Dog. Bloomberg journalist Jason Schreier reports that Sony plans to lay off 900 employees, with their London Studio facing complete closure, dealing a significant blow to their VR initiatives. Other studios affected in this round include Guerrilla, Insomniac, and Naughty Dog.

It’s a reasonable assumption that these layoffs are part of Sony’s efforts to increase profitability. The company reported low margins and lower-than-expected console sales in its latest quarterly report, leading to a corresponding drop in stock price of over 100 billion kronor.

The gaming community awaits further details on how these workforce reductions will impact Sony’s future projects and the overall gaming landscape.