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CWA claims Sony looking to further 'monopoly position' with latest studio closures

The labor union has implored game industry workers to seek the 'security of collective bargaining.'

Chris Kerr, News Editor

October 31, 2024

2 Min Read
A screenshot from Concord
Image via Sony

At a Glance

  • The CWA claims Sony has dissolved some studios to avoid competing in select markets and secure a 'monopoly position.'

The Communication Workers of America (CWA) has lambasted Sony over its decision to shutter Firewall Studios and Neon Koi.

The labor union said the latest round of layoffs at Sony makes it clear that video game workers must pursue the "security of collective bargaining."

"Collective bargaining not only allows workers a seat at the table to bargain for fair compensation, but also a voice on the job to have a say over how workers will be impacted by job cuts," reads a statement.

CWA described the two PlayStation Studios closures as "devastating" and claimed "highly-insulated video game CEOs are creating perilous working conditions for video game workers by eliminating their job stability."

The organization suggested that Sony's decision to shutter mobile studio Neon Koi shows the PlayStation maker is largely interested in furthering its "monopoly position in the video game industry," and said it would be sharing its concerns with regulators and policymakers.

"Sony's decision to dissolve studios outside their walled-garden of PlayStation-exclusive content, rather than making games that have to compete in the highly diverse and competitive mobile game market, should be a cautionary warning sign of Sony's interests in furthering their monopoly position in the video game industry," it continued.

"CWA plans to raise the anti-competitive impacts of Sony's increasing monopoly and monopsony power with the appropriate antitrust regulators, policymakers, and stakeholders."

This isn't the first time the CWA has taken a major platform holder to task. Back in May, the union asked Microsoft for more "respect and compassion" following a huge round of layoffs and studio closures. When the Xbox maker then proceeded to cut even more jobs, the CWA again expressed its disappointment.

The CWA was a vocal advocate of Microsoft's colossal merger with Activision Blizzard. Despite initially protesting the move, the union eventually threw its weight behind the deal after signing a labor neutrality agreement with Microsoft and Activision Blizzard to enable workers to freely unionize.

The deal was hailed as a major win for the CWA, but the Activision Blizzard merger has now resulted in thousands of layoffs as Microsoft works to implement a "sustainable cost structure" after spending $68.7 billion to purchase the Call of Duty maker.

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About the Author

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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