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PlayStation Studios head Hermen Hulst has confirmed that some projects have been cancelled in the wake of layoffs across Sony Interactive Entertainment.
Earlier today, SIE president and CEO Jim Ryan announced 900 layoffs would take place across the company, including the complete closure of PlayStation London Studios.
Hulst then followed up with a further statement, to discuss the impact of this workforce reduction and a “re-evaluation of how we operate”.
Newscast: Why are there so many games industry layoffs?
“PlayStation 5 is in its fourth year, and we are at a stage where we need to step back and look at what our business needs,” reads the statement from Hulst.
“At the same time, our industry has experienced continuing and fundamental change which affects how we all create, and play, games.
“Delivering the immersive, narrative-driven stories that PlayStation Studios is known for, at the quality bar that we aspire to, requires a re-evaluation of how we operate.”
PlayStation Studios has grown to deliver “social, online experiences” as well as launching games on PC and mobile. However, “growth itself is not an ambition”.
“We looked at our studios and our portfolio, evaluating projects in various stages of development, and have decided that some of those projects will not move forward,” said Hulst.
“I want to be clear that the decision to stop work on these projects is not a reflection on the talent or passion of team members.
“Our philosophy has always been to allow creative experimentation. Sometimes, great ideas don’t become great games. Sometimes, a project is started with the best intentions before shifts within the market or industry result in a change of plan.
“I am deeply saddened to see talented individuals leave the company. I have so much admiration, appreciation and respect for their work.”
While it remains unclear how many projects have been cancelled, the closure of London Studios likely means the unannounced project listed on its website based on “a brand new IP” will no longer be in development.
A report from Bloomberg stated a Twisted Metal live-service game developed by Firesprite has been cancelled. According to journalist Jason Schreier, this was in early development and was yet to be greenlit.
It’s also unclear if Hulst’s statement includes the already-cancelled The Last of Us multiplayer project.
Just two weeks ago, Sony announced a record quarter for PlayStation sales and revenue, though it expects console sales to decline over the next fiscal year.
Sony has now sold 54.7m PlayStation 5 consoles.
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