505 Games Parent Company Reducing Workforce by 30%; Focus on Sequels Over New Projects

The Digital Bros Group, the parent company of 505 Games, has announced plans to lay off roughly 30% of its staff as part of an organization review. This is being done to “align with the new competitive environment,” though “no significant effect of restructuring costs is expected on the annual projected results for [Fiscal Year 2024.]”

The justification for this decision is that since the pandemic, it’s claimed that consumers are more selective with what they purchase and would rather stick to “well established Intellectual Properties and [play] these same games for longer periods.”

In other words, it’s explicitly stated that sequels and “new versions of previously successful and established games” will be prioritized moving forward. As a result, new IPs will be limited. Operational efficiency will be the focus as part of this organizational restructuring.

“The restructuring program is expected to represent a reduction of approximately 30% of the global workforce, with the predominant portion concentrated within the studios.”

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Thanks to Hunter for sharing this news.