A lot will be overlooked as long as they can doom post about Sony.

I mean, Sony told us why their operating margins were low for the holiday quarter, and people literally ignored it. 

No one is dooming Sony. Quite the opposite. Even with minimal profit margins, they're still in a profitable state. It's just Sony's financial execs that want better margins.

It's the fact that they are profitable and yet still events of yesterday happened, and seems like will continue to happen later in the year as Media Molecule is still not safe from the chopping block according to Kotaku. 

No one should let any platform favoritism try to hide the realities of what's transpiring. 

Everyone should accept this is an industry wide issue as now EA is trimming down and I'm sure Ubisoft isn't too far behind. 

The gaming industry seems to be in a major transitional period. How everything will look by the end of it, who knows. Everything is crashing right now.  

I'm not sure how you're reading into this. Unless there's another article,

the one tweeted out by the Kotaku editor doesn't imply that there will be more. It only implies that Sony was picking between Media Molecule and London Studio, and that Sony decided to close London Studio as opposed to Media Molecule. 

A few posts in here are definitely downplaying. 

As for Sony laying off employees despite being profitable, that's not exactly new, it happens every year with much bigger companies. 

Yeah I may have misread exactly what was implied, but everything that has happened has taught us that nothing is set in stone. 

If Media Molecule was still 1 of the 2 studios under consideration, I wouldn't be breathing a sigh of relief. Especially when your co-founder left and the studio already had a round of layoffs last year. 

Also to add on top of that they only recently started to work on a new project, so that also doesn't really help their case. Usually it's more difficult to close a studio which has made quite a bit of progress on it's project vs one that isn't very far.

The issue is while the problem is bad already ... hundreds and thousands of people losing their jobs ... and this is Sony, if they are closing 4 studios in 4 years, how do you think it might be going with other normal sized 3rd party studios?

It costs hundreds of millions of dollars to max out a PS4 even.

And so how is this going to be tenable in the future for people who are banging the drum and demanding "better than PS4 graphics!" but also will start crying loudly if games are made even $10 more expensive for them?

Like what are we looking at cost wise to make big epic games that are an order of magnitude larger than a PS4? $300 million? $400 million? There are reports that Cyberpunk 2077 all-in cost $436 million, lol. And keep in mind this game is made largely in Poland where they get away with far lower salaries, to make this game in the US or Japan or the UK or something likely would've cost significantly more. GTA6 is probably well north of a half billion dollars budget.

How are you supposed to get graphical fidelity 2, 3, 4x above that when PS6 rolls around? It's unsustainable, I've been saying that a long time, now we're seeing in real time this whole thing play out. Sony saying they're going to move into PC moreso, massive layoffs at Sony, now just in the past hour we've learned EA will also be laying off hundreds of people and has canceled games.

Even when the next-next generation rolls around (PS6, Switch 3, etc.) is a studio magically going to be able to make even Horizon: Forbidden West scope games + visuals for dirt cheap? I doubt it. I think PS4 is an inflection point for the industry where a lot of developers simply aren't going to have the money to make projects much bigger than that. 

Not breathing a sigh of relief, but also not a reason to expect that it'll definitely happen.

Development doesn't always work that way. 

If it's deemed too expensive to release/market a product, they might very well shelf a finished project and take the loss. The Last of Us Factions from ND was probably pretty far along, they spent multiple years on it.

It's also hard to say when Media Molecule started their current project. Usually development has a preproduction process with a small number of developers for several years, and then you move onto full production with the full team for 2-3 years. 

Starting a project in preproduction is a very different status than starting a project in full production. The latter would be pretty good for Media Molecule. 

The collapse of AAA game companies.
Be ready for nothing else the. The same old boring AAA games

Actually get ready for the rise of GAAS games dominating the home only consoles. 

These publishers are going to get tired of massive budget for single player games that can be beaten in 20-30 hours and that's the end of the revenue stream, even Sony said they must expand their GAAS titles, it's going to push the industry into a place where there's like a couple of monster GAAS titles that are a time suck and can be monetized for years on end. 

The rest of the industry ... it's not going to be pretty. 

The Playstation-XBox way of doing things is definitely falling apart though and unfortunately people are losing their jobs because of it. 

You can't constantly have the developments cost double, triple every generation, have game prices remain largely static, have PS-XBox sales stay static from 10-20 years ago, and expect there to be no consequences.