Digital Bros, the parent company of 505 Games, has announced its plans to reduce its workforce by approximately 30%. This decision comes as the company adapts to changing market trends and consumer preferences in the post-pandemic era.
The gaming market has evolved, with a noticeable shift towards sequels and remakes, rather than new titles. Gamers have shown a preference for familiar intellectual properties, engaging with these games for extended periods. This shift in consumer behaviour has prompted Digital Bros to reassess its strategic direction.
In response to these market changes, Digital Bros is now focusing on developing sequels and new versions of its already successful games. This shift involves scaling back on the development of new, high-budget games. The company is undergoing a significant operational adjustment, including reevaluating the number of projects and restructuring the organization to align with the competitive gaming landscape, emphasizing quality and established success.
Digital Bros owns several gaming studios, including 505 Games, DR Studios, Kunos Simulazioni, Avantgarden, Nesting Games, Supernova Games, Infinity Plus Two, and Ingame Studios. The company has rights to notable games such as Control, Death Stranding, Ghostrunner, and Bloodstained: Ritual of the Night. It is also a major investor in Starbreeze, the developer of the Payday series.
One of the challenges faced by Digital Bros is the lack of a flagship game series that can be regularly expanded through sequels. This gap has become a significant hurdle in the current industry environment where sequels are increasingly popular.
505 Games, known for its diverse game publishing, is expected to be significantly impacted by these job cuts. While the exact number of employees affected remains undisclosed, a 30% reduction is a substantial figure in any scenario.
This workforce reduction primarily affects the company’s game development studios, aligning with the strategic shift towards prioritizing high-performing and sequelizable titles.
Digital Bros’ decision reflects broader industry trends, where many companies are refocusing their efforts on established, successful franchises. This shift has raised questions about the future of innovation and diversity in game development. As the industry continues to evolve, the impact of such strategic changes on both the workforce and the gaming landscape will be closely monitored by industry experts and gaming communities alike.