The gaming industry has been plagued with and studio closures and it’s not showing any signs of stopping anytime soon. The latest round of layoffs comes from Sony-owned .
Pete Parsons, the chief executive officer for Bungie, announced on its official website that it will eliminate 220 roles “representing roughly 17 percent of its workforce.” Executive and senior leader roles are the ones most affected by this round of layoffs but he also noted “these actions will affect every level of the company.”
Parsons blamed the need for layoffs on several factors including the “rising costs of development,” “industry shifts” and “enduring economic conditions.” He also noted the studio will focus its development efforts “entirely on Destiny and Marathon.”
Bungie and Sony seem to have been butting heads over economic concerns. Sony Interactive Entertainment chairman Hiroki Totoki noted during a February earnings call that he wanted to see more “accountability” with budgets and schedules from Bungie’s leaders. Destiny 2 alone has seen a noticeable dip in player numbers and revenues that fell 45 percent below its projections, according to .
Last year in October, reported that Bungie had to lay off an undetermined number of staffers that caused noticeable delays for its next game Marathon and an expansion for Destiny 2. A month later, Bungie announced it had to push back the release date for expansion for Destiny 2 from February to June.
Sony’s various game studios have also seen scores of layoffs in the last few months. it had to eliminate around 900 positions from its PlayStation division as well as its Technology, Creative and Support teams. The cuts also affected studios like Insomniac, Naughty Dog and Guerilla that produced some of the PlayStation 5’s biggest titles like Marvel’s Spider-Man 2, The Last of Us and Horizon Forbidden West. Sony also shut down its London studio after more than 20 years in operation that was right in the middle of working on a new fantasy co-op multiplayer game for the PS5.