Sony explains Bungie’s new restructuring plans

Sony explains Bungie’s new restructuring plans

Bungie Restructuring

Sony has announced a major restructuring of Bungie, the studio behind the popular Destiny 2 game. The changes come after Bungie faced financial difficulties and laid off over 300 employees in the past year. According to Sony President, COO, and CFO Hiroki Totoki, the remaining Bungie team of about 850 people will focus solely on developing Destiny 2 and Marathon.

Future content for Destiny 2 is expected to be scaled down. The restructuring will also involve transferring some parts of Bungie to Sony Interactive Entertainment (SIE). This includes back-office functions and the team working on Bungie’s “Gummi Bears” project.

Other unannounced Bungie projects will now be under SIE as well. Sony aims to optimize Bungie’s studio structure and enhance efficiency through cost restructuring and portfolio optimization. Reports suggest that without the acquisition by Sony, Bungie could have faced insolvency due to overpromising on deliverables.

In recent months, several key leaders at Bungie have left the company amid the layoffs. These include Destiny 2 director Joe Blackburn, expansion lead Catarina Macedo, and Destiny leaders Luke Smith and Mark Noseworthy. CEO Pete Parsons remains in his position, surprising many.

The restructuring raises questions about how players will respond to a scaled-down Destiny 2, whether Marathon will meet its 2025 release target, and when Bungie’s other projects under SIE will materialize. It is a critical time for the studio, filled with uncertainty.

Sony’s restructuring impacts Bungie’s projects

Bungie has acknowledged the concerns surrounding the future of Destiny 2 following the layoffs. In a recent post, the Destiny 2 team promised to address these issues soon and provide updates about the game’s future. “We know that recent changes at Bungie have created uncertainty surrounding the future of Destiny,” the team wrote.

“Rest assured we remain committed to Destiny, to supporting our community with transparency, and to delivering regular updates about the game. We’ll be talking with you all about the future of Destiny and plans for our next multi-year journey soon.”

However, the message has not inspired much confidence among players. Many feel that Bungie’s leadership, particularly CEO Pete Parsons, should take accountability for the studio’s mismanagement that led to the layoffs.

Sony has emphasized the need for “efficiency” and “portfolio optimization” in response to the layoffs at Bungie. Hiroki Totoki, who is also the chairman of SIE, stated, “The purpose is cost, the structure, and portfolio optimization. And simultaneously, we have to enhance the efficiency of the business.”

Totoki also mentioned that there would be a reallocation of resources as part of the restructuring.

“In any case, the organization of the structure will be changed, and we’d like to optimize our overall studio structure,” he added. The layoffs have caught many Bungie employees off guard, with some finding out about their job loss through public announcements. The broader gaming industry is also feeling the impact of the current wave of layoffs, which many consider unprecedented.

As Bungie and the gaming industry navigate these challenges, the future of game development remains uncertain. The impacts on both employers and employees will undoubtedly shape the landscape in the coming years.

devxblackblue

About Our Editorial Process

At DevX, we’re dedicated to tech entrepreneurship. Our team closely follows industry shifts, new products, AI breakthroughs, technology trends, and funding announcements. Articles undergo thorough editing to ensure accuracy and clarity, reflecting DevX’s style and supporting entrepreneurs in the tech sphere.

See our full editorial policy.

About Our Journalist