They probably will close some studios or at least make studios smaller. SCE has more employees than Nintendo, to support two platforms with declining software sales (PS2/PSP) and a console which is nowhere near as big as Sony's previous ones (PS2/PS1).
Sony's Electronics division already had massive layoffs, 5-10% of their employees in fact (depending on whether the temp ones were counted under the total). I don't see many reasons to believe that the Games division will be immune to cost cutting. They're too big for the PS3.
There's a chance that Sony decides the games division is untouchable... I wouldn't bet on it though.
My Mario Kart Wii friend code: 2707-1866-0957







