Is Santa Monica Studio at risk of layoffs like other Sony studios?

No. Sony's February 2024 layoffs cut 900 jobs (about 8% of SIE) and named Insomniac, Naughty Dog, and Guerrilla plus closed London Studio, but Santa Monica Studio was not listed among affected teams, and its headcount kept growing afterward, reaching an estimated 631 by June 2026.

Could AI replace Santa Monica Studio's developers?

Unlikely soon. Sony's May 2026 disclosures describe AI as a co-pilot for hair animation, QA, and engineering productivity across PlayStation Studios, explicitly stating tools are not a replacement for artists or creative direction, which remains human-led under Cory Barlog's new Head of Creative role as of June 2026.

Who owns Santa Monica Studio?

Santa Monica Studio is wholly owned by Sony Interactive Entertainment, itself part of Sony Group Corporation. It has no independent funding rounds or cap table; employees are Sony staff, and studio strategy sits under Hermen Hulst, CEO of PlayStation Studios' Studio Business Group, as of June 2026.

What is Santa Monica Studio's biggest competitor?

Its closest peers are sibling Sony studios Naughty Dog and Guerrilla Games, which compete internally for PlayStation resources, alongside external AAA action-adventure makers like FromSoftware and CD Projekt Red. No external studio can legally replicate the God of War IP itself.

Is Santa Monica Studio profitable?

It has no standalone financials since it is a cost-center division within Sony's Game & Network Services segment, not a separate company. Its commercial strength is shown through franchise sales: God of War Ragnarok sold 5.1 million units in its first week in 2022 and topped 15 million by November 2023.

Is it safe to take a job at Santa Monica Studio?

Relatively safe by industry standards. Headcount grew from roughly 200 in 2018 to an estimated 631 by June 2026, and the studio was spared in Sony's February 2024 layoffs that hit other first-party teams, though broader PlayStation Studios portfolio restructuring continues elsewhere.

Gaming companies · subsidiary of Sony Interactive Entertainment (SIE) · United States

Santa Monica Studio

sms.playstation.com ↗

Sony-owned studio making God of War, cinematic single-player games for PlayStation.

Hard to displace

Assessed 23 July 2026 · Evidence as of 23 July 2026

Strong structural protection; the business model survives ai pressure.

On the recordSince 23 July 2026 · Checkable from 2027 (expected) · Every call on the record Checkpoint: God of War Laufey release, first mainline game under new director Ariel Lawrence

The call

This studio sits inside Sony with a proven franchise, growing staff, and several games in the pipeline at once.

Santa Monica Studio makes video games for Sony, most famous for the God of War series which has sold over 50 million copies worldwide. It is hard to replace because Sony owns it completely, keeps investing in it (the team grew from 200 to 631 people), and promotes its leaders rather than cutting them like other studios. The big question is whether their next God of War game (being directed by a first-time director) will be as popular as before, and whether industry-wide problems like worker burnout and AI concerns will shake up their plans.

Why

AI pressure: None apparent. AI tools may speed up animation and asset work, but Sony keeps writing and direction human, so no visible replacement threat. Could AI do the core job? Unlikely.

Bigger players: Sony Interactive Entertainment (own parent). Sony owns the studio and could reallocate staff or shelve projects, but it spared this team while closing others in 2024. Could a giant copy it? No, they are blocked.

What protects it. It owns God of War, a 50 million unit franchise, and Sony keeps funding multiple projects and growing headcount.

What would change this call

God of War Laufey release and sales/review reception (expected 2027). Tests whether the franchise retains commercial strength under first-time director Ariel Lawrence.
Cory Barlog remains Head of Creative through Laufey launch without departure. Confirms leadership continuity underpinning the franchise's creative direction.
Sony announces further first-party studio closures or reassigns SMS staff/resources. Would signal SMS losing its protected status inside Sony's portfolio.

Key numbers

God of War Ragnarök passed 15M units (Nov 2023)
Headcount grew from 371 to 631 (June 2026)
Sony's 2024 layoffs named other studios, not this one (Feb 2024)

Named risks

Ryan Hurst injury forced Kratos recast and paused God of War TV series production, mid 2026. Severity: medium
Ongoing PlayStation Studios portfolio restructuring closed Bluepoint and Dark Outlaw in 2026. Severity: medium
Industry AI backlash and unionization pressure could affect morale as Sony expands AI tool use. Severity: low
God of War Laufey and Trilogy Remake are in early production with reveal timing unresolved. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Naughty Dog	contesting	Sibling Sony studio competing for internal PlayStation Studios resources as of 2026
Guerrilla Games	contesting	Named in Sony's Feb 2024 layoffs while Santa Monica Studio was spared
Bluepoint Games	gaining on	Bluepoint shut down Feb 2026 while Santa Monica Studio's headcount kept growing
FromSoftware	contesting	External AAA action-adventure peer with no God of War IP overlap

Questions people ask

Is Santa Monica Studio at risk of layoffs like other Sony studios?: No. Sony's February 2024 layoffs cut 900 jobs (about 8% of SIE) and named Insomniac, Naughty Dog, and Guerrilla plus closed London Studio, but Santa Monica Studio was not listed among affected teams, and its headcount kept growing afterward, reaching an estimated 631 by June 2026.
Could AI replace Santa Monica Studio's developers?: Unlikely soon. Sony's May 2026 disclosures describe AI as a co-pilot for hair animation, QA, and engineering productivity across PlayStation Studios, explicitly stating tools are not a replacement for artists or creative direction, which remains human-led under Cory Barlog's new Head of Creative role as of June 2026.
Who owns Santa Monica Studio?: Santa Monica Studio is wholly owned by Sony Interactive Entertainment, itself part of Sony Group Corporation. It has no independent funding rounds or cap table; employees are Sony staff, and studio strategy sits under Hermen Hulst, CEO of PlayStation Studios' Studio Business Group, as of June 2026.
What is Santa Monica Studio's biggest competitor?: Its closest peers are sibling Sony studios Naughty Dog and Guerrilla Games, which compete internally for PlayStation resources, alongside external AAA action-adventure makers like FromSoftware and CD Projekt Red. No external studio can legally replicate the God of War IP itself.
Is Santa Monica Studio profitable?: It has no standalone financials since it is a cost-center division within Sony's Game & Network Services segment, not a separate company. Its commercial strength is shown through franchise sales: God of War Ragnarok sold 5.1 million units in its first week in 2022 and topped 15 million by November 2023.
Is it safe to take a job at Santa Monica Studio?: Relatively safe by industry standards. Headcount grew from roughly 200 in 2018 to an estimated 631 by June 2026, and the studio was spared in Sony's February 2024 layoffs that hit other first-party teams, though broader PlayStation Studios portfolio restructuring continues elsewhere.

Timeline

2026-07-09Reports say Santa Monica Studio is developing a new franchise within the God of War universe
2026-06-03God of War Laufey announced; Cory Barlog promoted to Head of Creative
2026-05-08Sony discloses AI tool use across PlayStation Studios, calls it not a creator replacement
2026-02-21God of War Trilogy Remake announced at State of Play, in early production
2026-02-12God of War Sons of Sparta shadow-dropped for PS5
2026-02Bluepoint Games shut down as part of PlayStation Studios restructuring
2024-02Sony lays off 900 staff, closes London Studio; Santa Monica Studio not named
2023-11God of War Ragnarok surpasses 15 million units sold lifetime
2020-03-05Yumi Yang named head of Santa Monica Studio
2014Studio relocates from Santa Monica to Playa Vista, Los Angeles

Revision history

23 July 2026

First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.

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