Sony Game Studios Acquisitions and Divestitures

Layoffs at Bungie

Destiny 2 developer Bungie has begun laying off employees, following job cuts at other PlayStation studios in recent weeks.

News of layoffs at Bungie was shared by Bloomberg's Jason Schreier

Bungie social media lead Griffin Bennett, associate franchise editor Jason Guisao, and publishing producer and event manager Matthew Bianchi have also confirmed they've lost their jobs on social media. Eurogamer has contacted Sony for comment on today's news.
Sounds like consolidation of departments at this point, social media and community management being moved to PlayStation central. Needs more details on scope of layoffs.
 
Layoffs at Bungie


Sounds like consolidation of departments at this point, social media and community management being moved to PlayStation central. Needs more details on scope of layoffs.

And not just Bungie.

Layoffs at Bungie - which was formally acquired by Sony in July 2022 - follow job cuts across other PlayStation Studios in recent weeks. LittleBigPlanet developer Media Molecule and PlayStation's Visual Arts Service Group have both laid off staff, while The Last of Us studio Naughty Dog is said to have cut around 25 contract developers early.

A lot of AAA and high AA studios are attempting to rein in costs in the face of increasingly expensive game development. If you aren't generating block buster sales, there's a good chance you'll get downsized and/or closed down. Heck even big studios making block buster games are trying to get costs under control.

Regards,
SB
 
Bungie released 2 key people which have been behind Halo and Destiny soundtracks. After they got rid of Marty it seems nobody is left there which has influenced their past soundscapes and an essential element of the company's identity.

That makes a lot people concerned about the future of Destiny and the company itself.
 
I wonder if the firings can be delayed by a year or so (or even avoided) to be hendled more gracefully, by not paying the higher ups?

Like what Nintendo did long ago
 
Not a studio though related to boosting Sony's cloud gaming presence.

Making the announcement on their blog, Ueli Gallizzi, the SVP of Future Technology Group at SIE said “We are thrilled to announce that Sony Interactive Entertainment LLC (‘SIE’) has entered into an agreement to acquire iSIZE, a UK-based company specializing in deep learning for video delivery.”
...
For the longest time, the only way to stream modern PlayStation games was to do so through the console itself, unlike Microsoft which uses dedicated servers to offer streaming even if you do not own an Xbox in any capacity.

While many would likely still prefer to game using dedicated hardware with no streaming involved, it is clear that streaming will be adopted more and more over time, especially as the technology itself improves. As such, it makes sense for Sony to invest in this area of the market – even if consoles remain the core of PlayStation.
 
It's unclear to me what it'll bring to gaming. Streaming BW isn't the issue - it's latency etc. Although lower BW would be a cost cutting measure.
 
It's unclear to me what it'll bring to gaming. Streaming BW isn't the issue - it's latency etc. Although lower BW would be a cost cutting measure.
Bandwidth (lack of it) is still going to be a barrier for a lot of people. And there are still people with metered connections!
 
Bandwidth (lack of it) is still going to be a barrier for a lot of people.
Any idea what proportion? You only need HD video levels of BW which is 25 mbps for Netflix and that's under basic broadband these days. UK average is 70. Don't know what Sony is facing internationally but I'd have thought if people aren't paying for faster broadband, they aren't that interested in 4K game streaming services either.

Perhaps of more interest is upload speeds for streaming from your own console? Sony pursuing that route saves them server costs and it's already part of their streaming strategy including their nonsense 'handheld'.
 
Any idea what proportion? You only need HD video levels of BW which is 25 mbps for Netflix and that's under basic broadband these days. UK average is 70. Don't know what Sony is facing internationally but I'd have thought if people aren't paying for faster broadband, they aren't that interested in 4K game streaming services either.
The last I saw, a report from UNESCO last year it was on the rise. I cannot find the report now but the reason given was that 5G and satellite (Starlink) was increasingly being deployed is areas where the cost of upgrading basic infrastructure was not cost effective, and both of these are options effectively metered.

I live in an affluent part of Central London and I still have no fixed line option than DSL at 13mbps but what I do have, under a Government scheme, is a free 5G internet from Three but is anywhere between 30mbps on a bad day up to around 300mbps quite a lot of the time. FTTP has been coming "next year" for the last four years!

Perhaps of more interest is upload speeds for streaming from your own console? Sony pursuing that route saves them server costs and it's already part of their streaming strategy including their nonsense 'handheld'.
Could be, but their implementation is hardware and you'd need that in your console but Sony could be looking forward to PlayStation 6 which will at this point, be deep in development. :runaway:
 
Article about post layoffs at Bungie

Bungie Devs Say Atmosphere Is ‘Soul-Crushing’ Amid Layoffs, Cuts, and Fear of Total Sony Takeover​

One month after a major round of layoffsimpacted roughly 100 Bungie employeesof 1,200, those remaining at the Destiny developer say the cuts, as well as other cost-cutting measures, came alongside an apparent scramble by studio leadership to avoid a total Sony takeover.

….

While the exact details of Sony’s deal to acquire Bungie remain unknown to the public or employees, sources say they were told by leaders that the current split board structure is contingent on Bungie meeting certain financial goals. If Bungie falls short of certain financial thresholds by too great an amount, Sony is allowed to dissolve the existing board and take full control of the company.

 
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It's hilarious that they went from "we're barely part of Sony and operate independently" to "we are scrambling to avoid a total Sony takeover" in about a year. Good job Sony. :)

In all seriousness, this is an example of what I talked about last month: Don't believe these execs statements. It's not because Jim Ryan was evil or something, but he has to spin things in the most positive light. We just can't be naive as to what Sony, MS, Nintendo are really up to, which is maximizing profits for execs and shareholders. The reason I bring this up is because there are some people around here that think some companies are more virtuous than others and it's simply not the case.
 
It's hilarious that they went from "we're barely part of Sony and operate independently" to "we are scrambling to avoid a total Sony takeover" in about a year. Good job Sony. :)
I don't understand this story. I don't understand Sony's involvement, what the buyout actually got them, what Bungie are doing, what Bungie's financials were like before and after the buyout, etc. If they are independent, the financial situation and need to downsize is their own? They don't want to lose their independence? then why did they sell in the first place? Financial security? then why the need to cut-back now?
The reason I bring this up is because there are some people around here that think some companies are more virtuous than others and it's simply not the case.
I think that 'virtuous' behaviour was historical. Sony's attitude to acquisitions changed around 2019 and they are now buying without as much prior relationship as former studio acquisitions had. Many of us acknowledge a new 'arms race' of content acquisitions and I think most recognising that aren't in favour, prefer independent studios. There seems to be no advantages to being owned any more - these studios are shuttered just as readily. Being independent seems safer and freer.
 
Sorry. Like MS and Nintendo, Sony were never virtuous.

Like anything, being independent has its pros and cons. I know that Double Fine for instance, still gets to make the games they want without having to worry about every single game being a hit or they might lose their funding. Free to develop and publish what you want is also the freedom to fail and go under. Every studio needs to evaluate where they stand in that.
 
Sorry. Like MS and Nintendo, Sony were never virtuous.

Like anything, being independent has its pros and cons. I know that Double Fine for instance, still gets to make the games they want without having to worry about every single game being a hit or they might lose their funding. Free to develop and publish what you want is also the freedom to fail and go under. Every studio needs to evaluate where they stand in that.
His point isn't that Sony is virtuous. The point is that Sony don't have the same luxury of finances and there was no reasoning back then to do huge multi billion purchases. Hence their past strategy adapted to less frequent, mostly purchasing smaller, and often not so popular studios, with which they had prior special relationships, to enhance their internal production. Their actions weren't based on virtue but on what was the most affordable and strategically most logical action given their circumstances.

Coincidentally those infrequent and smaller buy outs mostly enhanced Sony without removing much from competition.

These circumstances changed when MS flexed their financial superpowers and begun purchasing en masse because they can, starting the new "arms race" that Shifty Geezer mentioned, forcing Sony to proceed with more frequent and bigger purchases than they are financially comfortable with, like buying Bungie to ensure they are strategically relevant and capable with the content they own relative to the buying habits of the competition.
 
It's hilarious that they went from "we're barely part of Sony and operate independently" to "we are scrambling to avoid a total Sony takeover" in about a year. Good job Sony. :)

In all seriousness, this is an example of what I talked about last month: Don't believe these execs statements. It's not because Jim Ryan was evil or something, but he has to spin things in the most positive light. We just can't be naive as to what Sony, MS, Nintendo are really up to, which is maximizing profits for execs and shareholders. The reason I bring this up is because there are some people around here that think some companies are more virtuous than others and it's simply not the case.

Everyone always thought MS was the problem but it turns out it was always Bungie. I'm the problem , it's me... bungie....

Bungie wanted to stop making Halo and leave ms so they cna make what they wanted which was a monetized shooter which they screwed up and launched with large pieces of content missing. Then they killed it for a sequel which had many of the same problems and now they have made horrible choices in terms of monetization that is driving away the player base. Buring this time they ran from MS to activision and now to sony. Now they want to run away from sony.

It is just what it is , at some point a studio can't run from its core issues and Bungie is now has its head in the chopping block of one of the most ruthless companies out there. Sony isn't a good guy team they are a business and they will cut what doesn't work .
 
I don't understand this story. I don't understand Sony's involvement, what the buyout actually got them, what Bungie are doing, what Bungie's financials were like before and after the buyout, etc. If they are independent, the financial situation and need to downsize is their own?
The way Bungie is structured is that Sony personnel sit on the board and get to influence the creative and commercial direction of the company, which might be to develop games that fill holes in Sony's first party portfolio and potentially to invest effort to use Sony-specific technologies, perhaps PSVR2.

It's interesting that this is just Bungie's management freaking out and there are no reported movies that Sony intend to exercise more control, and it was Bungie's management who decided to proceed with layoffs. I would be very surprised if Sony do try to exert control given how very hands off they are with all of their internal teams, even through missteps (endless delays by Naughty Dog, glacial release schedules by Polyphony, indulgence with pet projects like Days Gone etc), why exert creative freedom particularly on this studio when they have a particular form for delivering games that Sony have not.
 
Sony might be considering Bungie's acquisition as a "failed investment", according to a Destiny content creator who received a concerning email.



Popular Destiny 2 content creator Aztecross shares an anonymous email he recently recieved, detailing the major internal leadership conflict between Sony and Bungie.

(from the Reddit post)
I typed out the whole email from the video in case you don't have time to watch.



Hey there,

I'm writing this on a throwaway. Please use this info to corroborate other sources you may have.

Internal perspective at Sony is very negative towards Bungie right now. It is seen as a failed investment and strategies being discusses[sic] revolve around more of recouping losses. One internal leader from US is fighting to take over to right the ship, while many others across the Pacific want a much harsher method. The former US leader holds a lot of respect from overseas leadership, so it is likely (s)he will get their way. That person's perspective is that there are a many 'gluttonous' executives at Bungie who are not doing their jobs and are hindering the organization. It is believed that the workers are skilled, but the leadership is unable to perform their duties.

Bungie is in a hard spot, because pre-order numbers are lower than anticipated. I apologize, I do not have details on actual numbers. Sony believes that the finances will not allow Bungie to avoid a takeover even with another round of layoffs, as that would cannibalize development and future revenue.

Overall, Sony has been very upset at Bungie leadership. They have not been able to successfully advise Sony teams, and while Lightfall hit internal revenue targets, every target since has been missed at an escalating decline. Bungie leadership regularly reschedule meetings with Sony leadership, know that the next timeslot can be months away.

I hope this sheds light for ongoings from Sony's side. It is believed that the takeover would allow Sony to turn Destiny into a more profitable game. This sounds bad, but it is being treated as 'lightning in a bottle'. Sony leadership wants to nurture the game, and understand that more aggressive monetization would not be healthy. There would be a monetization model switch, though, as it is believed the current model is too confusing. The main difference between the US leader vs Japan leaders getting their way matters more for Bungie's in-development titles. If Japan leadership gets their way, teams for future titles will be gutted and reformed.
 
Don't feel that sort of unfounded rumour belongs here. This is for confirmed studios changes. Rumours require a rumour thread which people can follow/ignore. Most of these rumours (anonymous Pastebin 'insiders') turn out false...
 
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