H1Z1, EverQuest Developer Suffers Layoffs One Week After Leaving Sony

Just a week after H1Z1 and EverQuest developer Sony Online Entertainment split off from Sony and rebranded itself Daybreak Game Company, the developer has confirmed job losses at two of its American offices.

"As part of a strategic decision to rationalize the business, Daybreak Game Company announced today that it will eliminate positions in both its San Diego and Austin studios," the company said in a statement. "This alignment of resources better positions the newly independent studio for future growth opportunities and developments, including delivering on its legacy of making top online games and establishing a solid foundation for future multi-platform success. These reductions will not affect the operation of current games and the company will continue on its mission to partner with its player community to drive the future and push the boundaries of online gaming."

Kotaku first reported details of layoffs at Daybreak. A source told the site that Daybreak was cutting jobs in an effort to become "profitable." Sony sold SOE to New York-based private investment firm Columbus Nova last week for an undisclosed sum.

Among those affected by the SOE/Daybreak layoffs was veteran EverQuest producer David Georgeson. He confirmed his departure from the studio in a post on Twitter.

As part of the spinoff from Sony, Daybreak will now make games for Xbox platforms, including the Xbox One, though no specific projects have been announced.

"It will be business as usual and all SOE games will continue on their current path of development and operation," Daybreak said when news of the sale became public last week. "In fact, we expect to have even more resources available to us as a result of this acquisition. It also means new exciting developments for our existing IP and games as we can now fully embrace the multi-platform world we are living in."

Some of Daybreak's in-development games include H1Z1, EverQuest Next, and EverQuest Next Landmark, as well as continued support for PlanetSide 2, EverQuest II, and DC Universe Online.

Sony Online Entertainment was founded in 1995, starting with the name Sony Interactive Studios America, and in 1998 became SOE. It was originally tasked with making PlayStation-only games, though in recent years has focused specifically on free-to-play PC games.

GameSpot has contacted Daybreak for more information.