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Digital Bros, a parent company of 505 Games, is going through the restructuring process "to prioritize high-quality and long-standing successful titles".
Image Credit: Remedy Entertainment, Control
The game industry has been hit hard by a series of layoffs and restructures recently, affecting thousands of employees worldwide. 505 Games's parent company Digital Bros has also joined the worrying trend that has gained popularity among major companies including EA and Sony.
It's not the first time the news of 505 Games going through a reorganization process has emerged. Back in November 2023, it was announced that the company decided to undergo an "organizational review" that would result in a reduction of its workforce by approximately 30%.
These measures are supposed to align the company with the new competitive environment and ensure maximum operational efficiency.
In its official statement, the company wishes to adapt to the new post-pandemic video game market with the players "increasingly reverting to well established Intellectual Properties and playing these same games for longer periods" and therefore wants to focus on releasing sequels and "new versions of previously successful and established games, with a limited number of new larger budgets productions".
Image Credit: Remedy Entertainment, Control
Now, 505 Games is reportedly closing down studios in France, Germany, and Spain, putting an end to marketing and communication activities. Apparently, the number of employees affected isn't as big as last year's, but essentially it does mean a significant loss of regional relationships.
This goes along with the trend of other game development studios downsizing and becoming locally unrepresented after shutting down their European branches.
While it doesn't affect the reorganization efforts of 505 Games directly, there's been news of Remedy acquiring full rights to the Control franchise and some other future projects lately, and it remains to be seen how the publisher's ongoing restructuring and direct layoffs might impact its schedule.
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