Sucker Punch, Developer of Ghost of Yotei, Announces Layoffs

Sucker Punch, the studio behind Ghost of Yotei, has confirmed layoffs just over a year after its last release. According to Aftermath, the studio has let go of 26 employees, mere weeks after Ghost of Yotei's DLC and Complete Edition launched on PS5. The studio currently has around 200 employees. Aftermath obtained an email sent to the team by studio leadership, which cited 'challenges in the market' and changes in the scope of the team for its next project as the reasons behind the layoffs. The email reads: 'After carefully observing the challenges in the market and reviewing the team needs for our next project, we've decided to make some staffing reductions. Several positions across Sucker Punch will be eliminated as a result.' The note also mentioned that plans for the studio's future will be discussed next week. 'We know this is a lot to take in, and we want to assure you that we did not make this decision lightly. We have given this a lot of attention and worked to support our affected colleagues during this transition as well as we can. … There's no getting around that this is a hard day. Next week we will go into more details about the future.' As of now, it's unclear what Sucker Punch's next game will be, but the studio's statement suggests another project is in the works. Some fans are hoping for a return to Infamous, whether through a collection of remasters/remakes or a brand-new entry. Others want a new Sly Cooper. And of course, there's demand for more games in the studio's Ghost series. It wouldn't be surprising if at least one of these happens, as new IP with a big AAA budget is becoming harder and harder to justify. Ghost of Yotei was one of the biggest games of fall 2025, selling 3.3 million copies in its first month. It's also one of the best-reviewed PS5 exclusives to date. It was also expected to come to PC at some point, but that plan was scrapped when Sony opted to move away from PC. The game recently received a Complete Edition, which added a brand-new story DLC and other additional content. It's unclear if this moved any significant copies or if the audience for the game already capped out with its initial release. The layoffs also come during a tumultuous time for PlayStation, which has been upsetting fans over its controversial shift to an all-digital future starting in 2028. The company will phase out physical copies of games in favor of digital releases, likely beginning with PS6. PlayStation also shuttered Bluepoint, a beloved studio known for high-quality remasters, ports, and remakes such as Demon's Souls for PS5. Additionally, PlayStation attempted to scrap development on Hideo Kojima's next-gen game, Physint, until Microsoft stepped in to save it.