The mass layoffs of 2025 aren’t over yet, as Virtuos, the studio that worked onThe Elder Scrolls 4: Oblivion Remasteredand is currently producingMetal Gear Solid Delta: Snake Eateris losing hundreds of staff members.
Since the pandemic boom, the video game industry has been gradually shrinking. This is a result of major titlesunderperforming, the ballooning costs of development, and, most importantly, studios trying touse AI to replace rolesas a cost-cutting measure.
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The latest developerto be hit with the axe is Virtuos, a company with studios worldwide. In a statement toEurogamer, Virtuos has confirmed that over seven percent of its total staff have been cut, including around 200 in Asia, 70 in North America, and 70 in Europe.
Why Is Virtuos Cutting Staff?
Virtuos was the developer of The Elder Scrolls 4: Oblivion Remastered, one of the biggest games of 2025. It’s about to release Metal Gear Solid Delta: Snake Eater on August 28, which is a remake of one of the most beloved video games of all time. So, sandwiched between success, why is Virtuos undergoing layoffs?
According to the official statement, thereason for the layoffsis that it involves “primarily teams facing lower occupancy and slower demand due to structural shifts in the industry.” That’s a lot of words, so let’s break it down to a smaller one: money.
Studios are cutting costs worldwide, regardless of whether they actually succeed or fail. Virtuos has been involved in a ton of successful games over the past few years, but it doesn’t matter. In the end, it’s the bottom line that rules, which means plenty of hard-working staff members will become unemployed.
The question now is,when will it all end?Will the popping of the AI bubble lead to mass hiring, or will studios be satisfied with producing bad games, so long as they’re cheap? We here at DualShockers wish everyone affected by today’s awful news all the best and hope they land on their feet soon.
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