SCEE is looking at scaling down its operation.

17 04 2007

… Although no jobs have been cut as yet.

Speaking with GameDaily, SCEE’s director of corporate communications Nick Sharples said that “the management of the company has concluded that we need to change our structure, streamline and strengthen our business operations – and that our cost base needs to be significantly reduced.”

Sony’s vast European operation includes, as well as its publishing and PR teams in each country, four large development studios – three in the UK (London, Cambridge and Liverpool), plus one in the Netherlands (Guerilla Games in Amsterdam). Between them they have around 800 staff purely focused on games development – which makes them the UK’s largest single employer for games development.

“The confirmation comes following an internal briefing of SCEE staff outlining what may be on the cards – but the company is saying nothing else until a final decision is made. So whether any of the potential cuts will be felt amongst the development staff is still to be seen.

In some respects the potential cut backs – rumoured to be up to 10 per cent of SCEE’s operation – come as little surprise. The launch of the PS3 has infamously taken its financial toll on its Japanese parent, and while strong sales of the machine are expected to boost the company’s profits for the year, staff cut backs would expedite further money-saving.”

Michael French, Developmag

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