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Digital Bros, which publishes games under its subsidiary brand, 505 Games, is laying off roughly 30% of its global workforce. The company has 442 employees and offices in Italy, the United States, the UK, France, Spain, Germany, the Czech Republic, China, Japan, Australia, and Canada.
Games published under this label include Control, Sniper Elite III, PAYDAY 2, Terraria, Brothers: A Tale of Two Sons, and Virginia. 505 Games is currently working with Rabbit and Bear Studios to release the eagerly-anticipated Suikoden spiritual successor, Eiyuden Chronicle: Hundred Heroes.
In a statement, Digital Bros cited post-pandemic economic conditions as a contributing factor and promised to be more conservative in its assessments of projects moving forward:
"The videogame market has evolved since the pandemic to be more selective in terms of new games, with consumers increasingly reverting to well-established Intellectual Properties and playing these same games for longer periods. Digital Bros strategy has had to adapt to this new and evolving competitive scenario and will focus its efforts moving forward on the release of sequels and new versions of previously successful and established games, with a limited number of new larger budgets productions."
As is so often the case, the cost falls mainly on the employees, whose jobs will be sacrificed in order to make up for the statistical shortfall. Digital Bros says a "reduction of approximately 30% of the global workforce, with the predominant portion concentrated within the studios" will be necessary. In true corporate fashion, the statement finishes: "This program will not impact the expected Profit and Loss statement for FY 2023-2024, with no significant effect of the restructuring costs on the annual projected results due to the savings resulting from reduced payroll costs."
How do you feel about this latest round of redundancies? As always, our best wishes to all affected, and we hope you land on your feet.
[source digitalbros.com]
Comments 10
Nobody should turn up to the Game Awards. Who’s it celebrating, the CEOs?
This sucks. It seems every week a publisher/development team is hit with redundancies but it always appears to be the ground troops that get the chop and never the generals. I hope they all find work soon.
As always, CEO's and shareholders win. Considering the broken state of PAYDAY 3 on launch I'm not sure reducing staff is healthy long term strategy.
Why can’t anyone see or admit that this is the aftermath of the Covid boom? Everyone was in lockdown which caused subscription services and gaming to explode. Now everyone has their lives back all these services are in decline. All these redundancies are horrible but it’s just the companies reverting back to the status quo.
This is doubly distressing. Most significant is, of course, these employees. Absolutely horrible to be told you've lost your job after all your hard work. A situation created by poor decisions made at the top, with the ramifications felt by those who actually put the work in.
Then I read they're going to be focussing on sequels and reissues. I'm sure I'm not the only one frustrated with this lazy approach to a creative and engaging entertainment medium.
Gaming has become just like TV/Movies. Relying on established IPs and cranking out same after same. Thankfully the quality of indie games/AA games from small studios have really increased over the last decade
Yeah it's gaming returning to abit of normality after covid the boom was never gonna last ,I personally don't game now anywhere near as much as back then but I have alot of hobbies and interests anyway
@nessisonett
Isn't the purpose of the Game Awards to celebrate the life (and times) of Hideo Kojima stan Geoff Keighley?
Wow, that statement:
“The videogame market has evolved … with consumers increasingly reverting to well-established Intellectual Properties and playing these same games for longer periods. Digital Bros strategy has had to adapt … and will focus its efforts moving forward on the release of sequels and new versions of previously successful and established games, with a limited number of new larger budgets productions."
What a damning statement for gamers like me. I wish we had fewer long lifestyle games and annual retreads, and more new IP.
505 games is cool.i enjoy sniper elite 3.4.and 5.wordup son
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