Sony Interactive Entertainment (SIE) has initiated significant layoffs across its PlayStation support studios, notably affecting Visual Arts and PlayStation Studios Malaysia. These reductions are part of a broader restructuring strategy following the underperformance of key projects, most prominently the live-service game “Concord.”
The layoffs have impacted various departments within these studios. At Visual Arts, employees associated with the canceled projects were among those affected, but the cuts extended beyond specific teams. Javier Perez, a current employee at Visual Arts, expressed his sentiments on the situation:
“This week has been incredibly tough for everyone at PSVA. While I’m safe for now, many of my amazingly talented coworkers are not.”
Similarly, PlayStation Studios Malaysia experienced significant layoffs. Former Senior Project Manager Johann Affendy Mahfoor shared his perspective on the developments:
“There was a wave of workforce reduction and unfortunately I’m no longer part of the PS brand, along with a few other Production mates. Saddest, most devastating part for me was seeing high performers and key individuals who were actively working on projects being laid off.”
The Fallout from ‘Concord’s’ Failure
“Concord,” developed by Firewalk Studios, was an ambitious live-service game aiming to compete in the saturated hero shooter market, alongside titles like “Overwatch” and “Apex Legends.” Despite its potential, “Concord” struggled to differentiate itself, facing criticism for its lack of innovative gameplay mechanics, generic character roster, and subpar map design. Additionally, launching as a full-priced game in a genre dominated by free-to-play models hindered its acceptance among players.
The game’s development spanned eight years, but upon its release in late August 2024, it failed to meet sales expectations and attract a substantial player base. This led to Sony’s decision to delist the game from digital storefronts and shut down its servers by September 6, 2024. The rapid decline of “Concord” marked it as one of the shortest-lived online games, second only to “The Culling II,” which lasted eight days.
Closure of Firewalk Studios and Broader Industry Implications
The failure of “Concord” had immediate repercussions. On October 29, 2024, Sony announced the permanent closure of Firewalk Studios, resulting in significant job losses. This move underscored the challenges faced by developers in the competitive PvP shooter genre and raised questions about Sony’s strategy in the live-service game market.
The layoffs at Visual Arts and PS Studios Malaysia are part of a larger trend within the video game industry. Between 2023 and 2025, several major companies, including Embracer Group, Unity Technologies, and Microsoft Gaming, have implemented substantial workforce reductions, collectively affecting thousands of employees. Sony itself has cut approximately 1,475 jobs during this period.
Sony’s Shift in Strategy
In light of these challenges, Sony has reevaluated its approach to live-service games. The company canceled two upcoming titles, including a highly anticipated live-service game set in the “God of War” universe. This decision reflects a departure from former CEO Jim Ryan’s strategy of heavily investing in live-service games, especially after the setbacks experienced with projects like “Concord.” Despite these changes, Sony maintains that studios such as Bend and Bluepoint remain integral to PlayStation Studios and are not facing closure.
The early months of 2025 have seen a continuation of layoffs across the gaming industry, affecting developers regardless of their projects’ success. This trend highlights the volatile nature of the industry, where market dynamics, project performances, and strategic shifts can lead to sudden workforce changes.
For the affected employees at Visual Arts, PS Studios Malaysia, and other studios, these layoffs present significant challenges. However, the industry’s resilience and adaptability offer hope for new opportunities and ventures in the evolving landscape of game development.
