SCEA confirms US HQ layoffs, but game development won't be affected

Wolfwood | June 06, 2007 | News | Playstation 2 Playstation 3

Multiple web reports yesterday cited that Sony Computer Entertainment America had laid just off anywhere from 80-100 staff members from its US headquarters at Foster City, California. Despite the lingering shadow of cost-cutting measures already hovering above SCE, the Foster City layoffs reportedly came in a surprise announcement which caught employees off guard.

SCEA's corporate communications senior director David Karraker confirms the layoffs, but stresses that the decision was not made due to high costs presently incurred in their console hardware business. Additionally, Karraker clarifies the layoffs are not expected to impact current game development cycles. Employees hit with layoff notices will be given "fair" severance packages.

"In an effort to accurately align the company to meet the changing needs of our consumers and of our industry, Sony Computer Entertainment America has found it necessary to analyze our current business and to restructure the company as necessary to continue our standing as the market leader. These restructuring efforts are currently underway and do include the streamlining of our operations and other initiatives to further strengthen the business, reduce costs and increase operational efficiency.

"This move is not wholly related to any one product in our portfolio... More accurately, it is reflective of shifts in the marketplace and in consumers' wants and needs, such as the rise of digital content delivery and networked services. In order to maintain our market leadership, the management of SCEA has found it necessary to analyze the business and restructure the company as necessary."

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Raijin1999 | June 07, 2007

Won't be affected? I highly doubt that.
Unless they'd ALREADY cut back on developement staff a while back.
Tricks up their sleeve so far> Summer 2007 releases, Cellius, Guerilla, ???, execution of giant enemy crabs in historical Japan.

Of those that seem more likely to work, Guerilla and Killzone projects. As far as Summer releases go, could account for nil if the systems aren't flying off shelves. It's not like the 360 is missing out on vacation-time action. Also, Cellius seems dead in the water for now. I'm hoping that Ace Combat 6, PS3 version will be their first baby. At least that's my answer to why 06 hasn't been announced for the PS3 and only 360.