Digital Bros, which publishes games under its subsidiary brand, 505 Games, is laying off roughly 30% of its global workforce. The company has 442 employees and offices in Italy, the United States, the UK, France, Spain, Germany, the Czech Republic, China, Japan, Australia, and Canada.
Games published under this label include Control, Sniper Elite III, PAYDAY 2, Terraria, Brothers: A Tale of Two Sons, and Virginia. 505 Games is currently working with Rabbit and Bear Studios to release the eagerly-anticipated Suikoden spiritual successor, Eiyuden Chronicle: Hundred Heroes.
In a statement, Digital Bros cited post-pandemic economic conditions as a contributing factor and promised to be more conservative in its assessments of projects moving forward:
"The videogame market has evolved since the pandemic to be more selective in terms of new games, with consumers increasingly reverting to well-established Intellectual Properties and playing these same games for longer periods. Digital Bros strategy has had to adapt to this new and evolving competitive scenario and will focus its efforts moving forward on the release of sequels and new versions of previously successful and established games, with a limited number of new larger budgets productions."
As is so often the case, the cost falls mainly on the employees, whose jobs will be sacrificed in order to make up for the statistical shortfall. Digital Bros says a "reduction of approximately 30% of the global workforce, with the predominant portion concentrated within the studios" will be necessary. In true corporate fashion, the statement finishes: "This program will not impact the expected Profit and Loss statement for FY 2023-2024, with no significant effect of the restructuring costs on the annual projected results due to the savings resulting from reduced payroll costs."