PlayStation Veteran Blames Gaming Industry Slump on Pandemic Overexpansion

Former PlayStation executive Shuhei Yoshida has attributed the current wave of video game industry layoffs and slowdown to companies overextending during the COVID-19 pandemic. 'I think it's an overreaction to the COVID situation. Companies invested too much, including ourselves. Then we had to face reality and make adjustments,' Yoshida told VentureBeat in an interview.

Yoshida, who left Sony in January after 31 years at PlayStation, suggested the industry's growth would have been more stable without the pandemic-driven surge. 'If you take out the COVID years you'd have smoother growth over the years,' he said. Yoshida's comments come amid widespread job cuts across the gaming sector, including at Sony, Microsoft, Epic Games, and other major publishers following a post-pandemic decline in gaming engagement.

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