The Japanese gaming powerhouse revised its sales expectations downward for the PlayStation 5, signalling a downturn in demand for its premier console.

Sony is set to reduce its PlayStation division workforce by approximately 900 positions, accounting for an 8% cut across its global staff.

The move is part of a growing trend in the gaming industry toward downsizing in response to market conditions.

The layoffs, distributed across regions including the Americas, Japan, Europe, the Middle East, Africa, and Asia Pacific, aim to align Sony more closely with current industry dynamics and expectations from both developers and the gaming community.

Jim Ryan, CEO of Sony Interactive Entertainment, in a statement, noted the necessity of these changes to meet developer and gamer expectations and to foster innovation in gaming technology.

“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, CEO Sony Interactive Entertainment

This announcement comes amid a wave of layoffs in the tech sector, including Microsoft’s significant workforce reduction following its acquisition of Activision Blizzard, and Riot Games’ announcement of cutting 11% of its staff earlier this year.

Notably, the restructuring will lead to the complete shutdown of the PlayStation Studio in London, with additional cuts at the Firesprite studio and various other segments within Sony Interactive Entertainment in the UK.

Despite the layoffs signalling challenging times, Ryan assures that these measures do not reflect on the company’s, brand’s, or industry’s overall health. Instead, they represent a strategic adaptation to ensure Sony remains a leading player in the gaming industry, focused on delivering top-tier gaming experiences now and into the future.

Sony’s recent announcement of layoffs is the latest in a series of layoffs across the tech and gaming sector, highlighted by Microsoft’s decision in January to reduce its gaming division by approximately 9% following the acquisition of Activision Blizzard.