Sony has confirmed that PlayStation will continue its cost cutting exercise following mass layoffs in 2024. In a recent earnings call, CFO Hiroki Totoki said that the Group is reforming the PlayStation business, and cutting costs in various areas is part of that process.
PlayStation undergoing ‘kaizen improvements,’ says Sony
During a Q&A session with stakeholders, Totoki said that Sony is not only changing PlayStation’s business structure, it’s also reevaluating its approach to game development and introducing a “portfolio concept.” However, Totoki didn’t elaborate what that means in the context of PlayStation Studios‘ development pipeline.
“Regardless of the personnel, we have different cost cuts in different areas and optimization of investment in sales and marketing,” Totoki said via a translator. “We are doing all these in combination and got a very good result. This is kind of a kaizen improvement we need to continue to do, and we surely intend to do.”
Kaizen approach means making small, continuous improvements for overall significant results.
Totoki had said earlier in the year that PlayStation’s profit margins need to be improved, and in 2024 alone, the company shut down three studios including Concord dev Firewalk and the long-running London Studio. PlayStation laid off over 1,000 employees this year.