Digital Bros, current parent company of 505 Games, revealed in a press release its intention to reduce its workforce by around 30%. This news comes in the midst of a crisis in the video game industry which is seeing numerous massive layoffs occurring over the weeks.
The company explains its decision by highlighting in particular the evolution of the video game market since the pandemic. According to Digital Bros, consumers have become more demanding in their game purchases and are much more likely to turn to well-established intellectual properties.
As a result, Digital Bros has made the decision to adapt and focus its efforts on releasing sequels as well as new versions of previously established games. The publisher now intends to limit the number of new productions with bigger budgets.
In this uncertain period for the industry, it seems that taking risks does not pay off sufficiently, pushing Digital Bros to build on these previous successes. A decision which therefore impacts 30% of the company’s workforce, or more than 130 people. It remains to be seen whether this massive restructuring will actually make it possible to remain competitive.