Sony Announces New Studio Amid Bungie Layoffs

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Key Takeaways

  • Sony announced a new PlayStation Studio amid significant layoffs at Bungie.
  • Bungie cited rising development costs and economic challenges for cutting 220 jobs.
  • The new studio will reportedly use former Bungie developers to focus on a sci-fi action game.

Sony has created a new PlayStation Studio amidst another round of significant layoffs at Bungie.

On Wednesday, Bungie revealed it would be cutting 220 jobs, representing about 17% of its workforce. This decision is reportedly part of broader efforts to realign the company’s strategic goals and address financial challenges.

Bungie CEO Pete Parsons cited rising development costs, an economic slowdown, and overly ambitious expansion plans as reasons for the layoffs. He acknowledged the difficulty of the decision and expressed regret over losing talented employees. Those affected by the layoffs will receive severance packages, bonuses, and continued health coverage.

Additionally, Parsons confirmed that Bungie is collaborating with PlayStation Studios leadership to develop one of its incubation projects – an action game set in a new science-fantasy universe – into a new studio within PlayStation Studios.

Industry Speculates on Announcement

The move has sparked curiosity among industry observers, especially as it coincides with recent recruitment activities within PlayStation. 

Industry experts are speculating that former Bungie developers will staff the new studio. It has been confirmed the studio will focus on an original action game set in a sci-fi and fantasy universe. For context, the move aligns with Bungie’s efforts to streamline its operations and concentrate on key projects, Destiny 2 and Marathon.

Adding to the industry discussion, Jeff Grubb, in the latest episode of Gamespot’s Game Mess Mornings on Wednesday, suggested that PlayStation Studios is essentially taking over Bungie, with Hermen Hulst in charge. Grubb noted that many at Bungie were caught off guard by the layoffs, believing that recent successes would shield them from such measures. He emphasized that despite efforts, the financial situation necessitated these drastic actions.

More generally, Sony’s acquisition of Bungie in 2022 for $3.6 billion was part of its strategy to expand into live service games. However, Bungie has faced several challenges since then, including a previous round of layoffs in November 2023 due to declining Destiny 2 sales. These issues led to project delays, including the troubled release of The Final Shape expansion.

Looking for more Destiny 2 news? Bungie recently revealed that the game will carry on in 2025 with a project codenamed  “Frontiers.”