Sony President Gives Details on Bungie Restructuring

In a recent briefing regarding Sony Group Corporation’s Q1 FY2024 financial results, Sony’s President, Chief Operating Officer, and Chief Financial Officer, Hiroki Totoki, provided additional context on the significant restructuring of Bungie, which has been a focal point in the gaming industry following a wave of layoffs.

Previously, Bungie CEO Pete Parsons announced that the studio would lay off 220 employees and transition an additional 155 roles to Sony Interactive Entertainment (SIE) over the coming quarters. The restructuring also includes the transfer of development duties for an upcoming science-fantasy action game to a new studio within PlayStation Studios.

Totoki explained that the primary motivations behind these changes are “cost, structure, and portfolio optimization,” and he highlighted the need to “enhance the efficiency of the business.” He highlighted that Sony Interactive Entertainment will integrate Bungie’s back office functions, and Bungie will concentrate its resources on its flagship titles, Destiny 2 and Marathon.

The restructuring follows the successful launch of Destiny 2: The Final Shape, which has received positive reviews. However, the scale of the layoffs has sparked concern and uncertainty among the affected staff. Some employees, such as sound designer Tzvi Sherman, reported learning about their layoffs only through public announcements, showcased the abrupt nature of the changes.

The move marks a significant overhaul for Bungie, reflecting broader industry trends towards optimizing studio operations and consolidating resources under major gaming corporations. As these adjustments take shape, the impact on Bungie’s ongoing projects and the broader PlayStation Studios network will continue to unfold.

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