Sony could reportedly take control of the studio if it continues to fall short of financial expectations.

IGN has published a serious exposé on Bungie, which was acquired by Sony last year. Citing several employees, the publication claims that the currently fully independent subsidiary could be taken over by Sony if financial targets are not met by Bungie, and that a takeover could result in the board being dominated by PlayStation management, who are currently only partially present at the studio!

Currently, Bungie CEO Pete Parsons holds the tie-breaking vote in case it’s required. The board also includes Hermen Hulst (PlayStation Studios’ chief executive, formerly of Guerrilla Games, known for Killzone and Horizon), Eric Lempel (Sony’s senior vice president), Luis Villegas (Bungie’s chief technology officer), and Jason Jones (Bungie’s co-founder). According to IGN’s sources, after the recent layoffs (around 100 people were let go), a sword of Damocles has been hanging over the studio: if the team doesn’t make money, only PlayStation management will be on the board, ending the team’s independent status.

Bungie employees previously told IGN that the October cuts were not made by Sony, but by Bungie itself, and that the studio made the decision due to Destiny 2’s underperformance over the past year. Pre-orders for The Final Shape were also below expectations, which didn’t help their situation. (Pre-orders are bad.) And the cuts, the cost-cutting measures (not hiring people, cutting travel budgets, canceling holiday bonuses, reducing performance bonuses…) have taken a toll on studio morale. If The Final Shape doesn’t do very well, more layoffs could be on the way.

This situation doesn’t look very good, even though Bungie was the team behind the creation of Halo (even though the studio has no connection to the IP anymore)!

Source: Gamesindustry