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Sony to lay off 900 staff globally as online video games flop

PlayStation maker will also close a division in London, while some game manufacturers will also been affected

The PlayStation maker previously made huge investments in “games as a service,” or online games designed to be monetized over a long period of time. But the market for these games has become oversaturated, and many have flopped. Picture: Getty

Sony will lay off 900 people across its video-game division worldwide, or about 8 per cent of its employees, and close a group in London.

“After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company,” Jim Ryan, the departing Sony chief executive wrote Tuesday in a note to staff.

Sony said the layoffs will also impact game makers Insomniac (the studio behind Spider-Man), Naughty Dog (The Last of Us) and Guerrilla Games (Horizon), three of its most successful subsidiaries. Guerrilla Games is cutting 10 per cent of its staff, roughly 40 employees, according to people familiar with the matter. Sony’s PlayStation London, best known for the SingStar series, as well as multiple virtual reality games, will shut down.