Media Molecule
Sony-owned UK studio behind LittleBigPlanet and Dreams, now building an unannounced open-world game.
On the record
Checkpoint: Possible formal reveal of the untitled open-world IP at a Sony showcase
The call
Media Molecule has no shipping product and survives on Sony's patience while a new, unproven open-world game sits 15 months into development.
Media Molecule is a video game maker owned by Sony that creates tools and games for players to build their own games. Right now it is hard to replace because it has talented artists and designers, but tools like Roblox and Unity are starting to do similar things with artificial intelligence, which makes the old approach less unique. The studio will sink or swim based on whether its new open-world game (still in early work as of mid-2026) ships successfully before Sony cuts it loose in the next round of budget cuts, which is a real danger given that the company already shut down other game studios in 2024.
Why
01
AI pressure: Roblox Cube, Unreal Editor for Fortnite (UEFN), Unity Muse. These tools already let anyone build and monetize games, the exact creation-platform idea Dreams tried and failed to sell commercially. Could AI do the core job? Yes, likely.
02
Bigger players: Sony Interactive Entertainment (sole parent and funder). Sony pays every bill and already cut 15% of staff and closed London Studio in 2024; another consolidation wave could hit before the new game ships. Could a giant copy it? Yes, easily.
03
What protects it. Sony's continued willingness to fund a non-shipping studio while its unannounced open-world game stays in early production.
What would change this call
Sony reveals Media Molecule's new IP at a State of Play or similar showcase within 12 months. Would show Sony still backing the studio with real marketing commitment.
Media Molecule announces another headcount cut or a senior departure before the new IP ships. Would signal Sony winding the studio down ahead of launch.
Sony closes or merges another PlayStation Studios team during 2026. Would indicate a fresh consolidation wave that could reach Media Molecule.
Media Molecule announces another headcount cut or a senior departure before the new IP ships. Would signal Sony winding the studio down ahead of launch.
Sony closes or merges another PlayStation Studios team during 2026. Would indicate a fresh consolidation wave that could reach Media Molecule.
Key numbers
- Dreams live support ended Sept 2023
- Headcount cut from 135 to ~115 staff
- LittleBigPlanet 3 servers shut down
Named risks
- No shipping revenue-generating product since Dreams live support ended September 2023.
- Entirely dependent on Sony as sole funder inside a parent actively restructuring other divisions (Sony Pictures cut hundreds of jobs April 2026).
- Unannounced New IP still early-stage (15 months in as of May 2026 leak) with no formal Sony marketing commitment.
- Loss of co-founder Mark Healey in 2023 and prior 2023-2024 headcount reduction from 135 to ~115.
- Precedent of Sony abruptly shutting down studio products, as with LittleBigPlanet 3 servers in April 2024.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Roblox | losing to | Roblox Studio's generative tools (Cube, CubePart update, Assistant AI) commoditize the creation-tool niche Dreams targeted, as of 2026 |
| Epic Games (Fortnite/UEFN) | losing to | Unreal Editor for Fortnite dominates mainstream UGC creation, the space Dreams (ended Sept 2023) failed to hold |
| Mojang/Minecraft | losing to | Long-running modding ecosystem eclipsed Dreams and LittleBigPlanet as go-to player-creation platforms |
| Other PlayStation Studios teams | contesting | Internal Sony resourcing competition intensified after 2024 layoffs cut ~900 staff and closed London studio |
Questions people ask
- Who owns Media Molecule?
- Media Molecule is a wholly owned subsidiary of Sony, acquired by Sony Computer Entertainment for an undisclosed sum announced 2 March 2010 and folded into what is now PlayStation Studios. There has been no ownership change since, and the studio has no independent funding or revenue history separate from Sony.
- Is Media Molecule profitable?
- The last public financials are UK Companies House figures for FY2019: £10.5M revenue and £1.1M net income. No newer standalone filings were found; since then Dreams live support ended (September 2023) and LittleBigPlanet 3 servers shut in April 2024, leaving no shipping revenue-generating product as of 2026.
- Has Media Molecule had layoffs?
- Yes. Media Molecule entered a staff consultation in October 2023 to cut headcount from 135 to roughly 115, concluding spring 2024 with elimination of its Curation Team. This was separate from Sony's wider March 2024 PlayStation layoffs of about 900 staff, roughly 8% of the division.
- Could AI replace Media Molecule's game-creation tools?
- Generative tools like Roblox's Cube 3D model and in-Studio Assistant AI, plus tools like Unity Muse, are automating the exact prompt-to-playable-world niche Dreams occupied. Media Molecule ended Dreams live support in September 2023 and pivoted to an authored open-world game, reducing but not eliminating this exposure.
- Who is Media Molecule's biggest competitor?
- In the user-generated-content space, Roblox and Epic Games' Unreal Editor for Fortnite have overtaken the creation-tool niche Dreams (2020) tried to own; Dreams itself ended live support in September 2023 after Sony said it could not find a sustainable commercial path.
- What is Media Molecule working on now?
- An unannounced open-world project, internally called New IP, reported via a leaked employee resume in May 2026 showing a Senior Environment Designer working on it since April 2025. Co-founder Mark Healey said in May 2024 it is 'more of a game than a creative tool,' unlike Dreams.
Timeline
- 2026-05-25Leaked resume reveals unannounced New IP is open-world, in dev since April 2025
- 2024-04-20LittleBigPlanet 3 online servers confirmed shut down indefinitely
- 2024-03-21Sony PlayStation-wide layoffs cut ~900 staff, ~8% of division, London studio closed
- 2024-03-20Media Molecule consultation concludes, Curation Team eliminated
- 2023-10-24Media Molecule enters staff consultation to cut headcount from 135 to ~115
- 2023-09Dreams live support ends with final update
- 2023-08-08Co-founder Mark Healey departs studio after 17 years
- 2023-04-11Media Molecule announces end of Dreams live support, pivot to new project
- 2010-03-02Sony Computer Entertainment acquires Media Molecule
- 2006-01-04Media Molecule founded and incorporated in Guildford, UK
Revision history
23 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Sony Computer Entertainment Acquires Media Molecule (2010-03-02)
- Media Molecule
- Media Molecule to pull the plug on Dreams live support (2023-04-11)
- Media Molecule to reduce workforce (2023-10-24)
- Media Molecule layoffs will mean the end of live curation support for Dreams (2024-03-20)
- Dreams Dev Media Molecule Says Layoffs Impact Planned Community and Curation Support (2024-03-21)
- Dreams (video game)
- Media Molecule to end live support for Dreams (2023-04-11)
- Sony confirms LittleBigPlanet 3 shutdown (2024-04-20)
- Media Molecule's Next Game May Be Open-World (2026-05-25)
- Media Molecule's Next Game Could Be a Big Shift From LittleBigPlanet and Dreams (2026-05-26)
- UGC Backends: Roblox, Fortnite Creative & Modding Platforms (2026-04-30)