Insomniac Games quickly established itself as one of the most productive studios in the PlayStation sector after Sony acquired it four years ago for what seemed like a steal at $229 million. 2020s Spider-Man: Miles Morales2021 Ratchet & Clank: Rift Apartand this year Spider Man 2 showed that the studio could continue to release technically impressive blockbusters without sacrificing quality.
Various internal documents have now been published online as part of a malicious ransomware hack Show how difficult it was to pull off as studio heads had to juggle teams, schedules and budgets Tetris Blocks to deliver games that are not only excellent but also profitable. They also point out that possible cuts within Sony Worldwide Studios may only add to the challenge.
Sony did not respond to a request for comment.
Spider Man 2 was a huge milestone for Insomniac Games. Not only did Sony receive rave reviews and a nomination for Game of the Year at this year’s Game Awards, but they also called it the fastest-selling PlayStation game of all time, despite it being exclusive to the PS5. But the groundbreaking blockbuster, which featured jaw-dropping action set pieces and plenty of carefully crafted story beats, was also apparently the studio’s most expensive game ever. An internal presentation estimated the final cost at around $300 million, nearly three times the 2018 figure Spider-Man for the PS4.
While the internal presentations, emails, and meeting notes released as part of the hack provide a limited and incomplete picture of the studio, they still offer a small glimpse into the kinds of problems Insomniac Games is currently thinking about and hoping to address in the future. A financial post-mortem analysis on Spider Man 2
Pre-production began in 2018 and at its peak earlier this year, 264 developers were working directly on the project, with another 116 contributing in the form of managers, IT staff and other support functions. 314 minutes of film alone cost over $40 million. The final cost, according to the presentation, was about $30 million over the original budget of $270 million, meaning the game would need to sell 7.2 million copies at full price to break even. As of November 12th, 6.1 million copies of the game have been sold.
Another presentation from Insomniac over the summer about the next five years outlined development improvements the studio plans to take advantage of in developing its upcoming Wolverine action game without increasing costs even further. Notes from the presentation mention Toyota-style “line stops,” which allow executives to halt production when certain problems are discovered so that they are addressed early rather than causing major problems later. The presentation also directly noted that the cinematics and scene lengths in previous games had “exceeded our initial estimates.” wolverine, on the other hand, will have a centralized story design pipeline to try and streamline things. All of this is done with the clear goal of delivering a “GOTY Contender” by 2026.
These and other presentations clearly convey that, despite its successes and the apparent resources of its parent company, Insomniac is struggling to reverse the trend of skyrocketing blockbuster development costs. “We need to make future AAA franchise games for $350 million or less,” reads a slide from a “Sustainable Budgets” presentation earlier this year. “In today’s dollars, that’s like making money [Spider-Man 2] for $215 million. That’s $65 million less than ours [Spider-Man 2] Budget.” Another slide makes the problem even clearer: “… is three times the investment in [Spider-Man 2] Is that obvious to everyone who plays the game?”
Games like Miles Morales, a stopgap spin-off, offer a possible alternative. According to a 2022 Mid-Size Games presentation, the shorter adventure had a budget of just $90 million. But it sold over 10 million copies, making it not only incredibly profitable but also popular with fans. The presentation notes that these mid-sized games generally take two years less to create than tentpole games Spider Man 2
All of this underscores the difficult decisions a studio like Insomniac has to make when it comes to which projects to move forward with and when. Internal documents of the hack were viewed multiple timelines for different game plans depending on which ones are prioritized or put on hold. While the next big game is wolverinefollowed finally by Spider Man 3 and a X Men GamePresentations show that Insomniac explored different roadmaps at different points in time.
These included live multiplayer modes, a standalone mode Poison Backlash and the possibility of rupture Spider Man 3 in two parts. Excel spreadsheets show developers in groups of 30, showing the impact on budget and scheduling depending on which projects they are moved to and when. A spreadsheet of winter work orders sent out in September shows only the teams working on them wolverine, Spider Man 3a new Ratchet and clampand a new IP as well as post-launch updates Spider Man 2. Notes from a meeting in July suggest this wolverine was supposed to ship in 2025 and Insomniac needed to find a project that could fill that gap if it was pushed back to 2026.
Regardless of what final decisions Insomniac will make regarding its upcoming projects, some internal documents suggest that Sony’s requested budget cuts are complicating matters. Presentations earlier this year suggested an expected future headcount of 500. However, a September email from Sony indicated a maximum headcount of 470 full-time employees, down from the current estimated 485 employees. PowerPoint slides from a September presentation point to “6 potential areas for workforce reduction,” including some layoffs, not filling certain positions, and implementing performance improvement plans for up to five employees that could ultimately lead to their dismissal.
A more recent presentation in November suggests potentially more drastic cuts. “Slimming down Ratchet and reducing new IP addresses will not account for the reductions Sony is seeking,” said a PowerPoint note attributed to Insomniac head Ted Price. “To strategically remove 50-75 people, our best option is to intervene deeply wolverine And Spider Man 3Replacing weaker performers with team members ratchet and new IP.”
The same presentation argues that releasing a standalone Venom game in 2027 would bring outsized profits and also create a “bridge.” Spider Man 3similar to Miles Morales did for Spider Man 2. It is unclear whether the proposal for this game would have mitigated or reduced the need for cuts. The presentation notes attributed to Price indicate that those working on it ratchet and the new IP are veterans of the studio, and if they were axed there would be a loss of “institutional knowledge and leadership skills critical to future titles.” The presentation also noted that cuts to teams would create a flight risk that could lead to further departures.
Business plans change and Sony would not confirm whether the cuts discussed are still on the table or have already been completed. However, in a file of notes relating to an external PlayStation meeting on November 9th, the number of cuts is confirmed to be between 50 and 75. The notes suggest that the cuts will also be requested from other PlayStation studios, including the line “There will be a studio closure.” Sony did not respond to requests for clarification.
In a particularly difficult year for video game companies, Sony was not immune. It closed Pixel Opus earlier this year and Sackboy There were layoffs at the manufacturer Media Molecule. Contractors have been cut The last of us Studio Naughty Dog and PlayStation’s Visual Arts Studio also suffered cuts. It’s hard to say if this is the extent of the damage or just the beginning. The hacked materials from Insomniac show the heads of a studio that has been delivering hit after hit and struggling to come up with a plan for the next five years so they can keep doing so.
