Sucker Punch Productions, the Sony-owned studio behind Ghost of Yōtei, Ghost of Tsushima, Infamous, and Sly Cooper, has reportedly laid off 26 employees. The cuts come shortly after the release of Ghost of Yōtei: Complete Edition and its major expansions.

According to a report by Aftermath, the layoffs were confirmed by a former employee and detailed in an internal email from studio leadership. The email cited “challenges in the market” and a review of the team’s needs for Sucker Punch’s next project, though the studio has not said which roles were affected or what that project will be.

Leadership said it would support affected employees through the transition and share more information about the studio’s future the following week. Neither Sucker Punch nor Sony has publicly commented beyond the reported internal communication.

The news is especially striking because Ghost of Yōtei launched in 2025 to strong critical and commercial reception, reportedly selling more than 5 million copies. Its Complete Edition arrived earlier this month alongside the story expansion Echoes of Sekigahara and the roguelike mode Most Wanted, which brought back Ghost of Tsushima protagonist Jin Sakai as a playable character.

For the developers affected, the layoffs represent a difficult turn after contributing to one of PlayStation’s most successful recent releases. The situation also highlights a broader industry reality: even acclaimed, commercially successful games no longer guarantee stability for the teams that make them.