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The layoffs are frustrating. I hope that things will start to settle. This year doesn't look like a very strong one. 

The layoffs are pretty devastating, and I don't think it would be good for morale for there to be more.

There's also long term issues. You can't just cut members of your team, and expect that development will continue as expected. Shutting down another studio or two might be a way to shore up short term profit margins, but at the same time, it also just wouldn't be a good thing long term.

I don't particularly think Sony makes enough game as it is, and there was a leaked presentation that suggested that Sony agreed with that. 

There are all these contradictory goals. 

You can't make enough games, while making increasingly massive expensive games, while making games that increasingly take years to put out, while making huge profits. 

So far Sony is doing fine, those games are making money. But there's going to be a limit. 
Something has to give.

Either get more studios, make more smaller titles. Accept that you can't make enough games, and potentially lose market share. A few other options in there too.