Earlier, rumors circulated alleging that long-time Sony developer, Japan Studio, was downsizing, following sources claiming that many of its staff were laid off. Ahead of the beginning of the fiscal year in Japan, it was reported that the majority of Japan Studio's staff were let go after their annual contracts weren't renewed for the new year. Due to the sudden news, many were unsure of the aftermath involving Japan Studio including the circumstances of the downscaling.

At the time, the only staff that remained in the company were the localization staff and the staff in charge of business affairs. ASOBI Team, the team within Japan Studio responsible for Astro's Playroom, remained, and it was assumed through sources that it would continue developing titles as its own entity. Sony has since shed some light on the fate of Japan Studio as well as Sony's in-house development studios in the future.

RELATED: Two Bloodborne Developers Are Leaving Sony Japan Studio

An official statement from Sony Interactive Entertainment properly explained the situation involving Japan Studio, citing that Japan Studio would not shut down. Instead, Japan Studio would center around the ASOBI Team at the beginning of Japan's fiscal year, focusing its time and effort into the development of Astro's Playroom. 

In an effort to further strengthen business operations, SIE can confirm PlayStation Studios JAPAN Studio will be re-organized into a new organization on April 1. JAPAN Studio will be re-centered to Team ASOBI, the creative team behind Astro's PLAYROOM, allowing the team to focus on a single vision and build on the popularity of Astro’s PLAYROOM.

In addition, the roles of external production, software localization, and IP management of JAPAN Studio titles will be concentrated within the global functions of PlayStation Studios.

While it's great news that the long-time studio won't completely shut its doors, its impending restructuring is bittersweet, leaving a legacy behind its wake. Perhaps the most interesting takeaway from this statement is the future of Japan Studio's existing IPs. It seems that moving forward, the IPs tied to Japan Studio will fall under the responsibility of PlayStation Studios. PlayStation Studios was created by Sony as the official branding for all in-house developers working within Sony, including Sucker Punch, Naughty Dog, Insomniac Games, and several others.

The possibility of seeing cult classic IPs that Japan Studio was responsible for making a comeback, such as Ape Escape and Gravity Rush, isn't off the table completely. They would be handled by the developers within PlayStation Studios and not necessarily the original developers. Some of its developers tied to Japan Studio's notable titles have already moved on from the company, with others forming their own company, Bokeh Game Studio.

Currently, there are no plans involving Japan Studio following the release of Astro's Playroom in lieu of its future restructuring as a company. The other title it had worked on in 2020 was the remake of 2009's Demon Souls, released as a launch title for the PS5 as a collaborative effort with Bluepoint Games. The release of Demon Souls' proved to be Japan Studio's most successful title in recent memory, selling record numbers in Japan.

MORE: PlayStation Boss Seems to Throw Shade at Cyberpunk 2077

Source: IGN