Ghost of Yotei Developer Sucker Punch Hit With Layoffs

The PlayStation studio has let go of 26 employees, citing market challenges and evolving project needs.

Oct 26, 2026
Game News
Ghost of Yotei Developer Sucker Punch Hit With Layoffs

Sucker Punch, the development studio behind the critically acclaimed Ghost of Yotei, has undergone staff reductions. The company confirmed that 26 employees were let go, a little over a year after the release of its latest title. This news comes shortly after the recent release of Ghost of Yotei's DLC and Complete Edition for PlayStation 5.

In an email to staff, studio leadership cited "challenges in the market" and changes in the scope of the team for its next project as the primary reasons for the layoffs. "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 email stated. Leadership also indicated that further details regarding the studio's future plans would be shared in the coming week.

While Sucker Punch's next project remains officially unannounced, the studio's statement suggests that a new game is in development. Speculation among fans ranges from a return to the Infamous or Sly Cooper franchises to further entries in the Ghost of Yotei series. Given the increasing difficulty of justifying new intellectual property with large AAA budgets, a continuation of existing franchises appears probable.

Ghost of Yotei was a significant commercial and critical success for Sucker Punch and PlayStation, selling 3.3 million copies in its first month and receiving strong reviews. The game's planned PC port was reportedly canceled as Sony shifts its strategy away from PC releases. The recent Complete Edition added new story content and a survival mode, but it is unclear how much this boosted sales after the initial launch.

The layoffs at Sucker Punch occur during a period of significant change for PlayStation. The company has announced a move towards an all-digital future, phasing out physical game disc production by 2028, likely beginning with the PS6 generation. This shift follows the closure of Bluepoint Games, a studio known for its remasters and remakes, and a report that Xbox will publish Hideo Kojima's next game, previously intended for PlayStation.

Sources