Sandsoft Shuts Down Studios in Riyadh and Barcelona, Affecting 65 Jobs

In a significant restructuring move, Sandsoft Games announced the closure of two of its internal studios located in Riyadh, Saudi Arabia, and Barcelona, Spain, impacting approximately 65 employees. This decision, communicated on July 23, 2025, comes as the company shifts its focus towards expanding its publishing operations, an area where it has experienced notable growth.

David Fernández, CEO of Sandsoft, stated, "This isn’t about the quality of work or talent at these studios – our teams have been incredible. It’s really about concentrating our resources where we can have the biggest impact and build sustainable growth." According to a spokesperson for the company, the layoffs were a difficult decision, and Sandsoft is committed to supporting affected employees during the transition period.

The closures are part of a broader trend in the gaming industry, which has seen substantial job losses in 2025. Reports indicate that over 4,000 developers have already been laid off this year, with significant cuts occurring at major companies such as Electronic Arts (EA), Microsoft, and Jagex. In a related context, a partnership between Sandsoft and NetEase Games, established in 2022, aimed to enhance the gaming market in the Middle East and North Africa (MENA) region, raising questions about the future of such collaborations amid ongoing layoffs.

Historical data shows that the gaming industry has been volatile in recent years, frequently subject to cycles of hiring and layoffs. According to a 2023 report by the International Game Developers Association (IGDA), the industry has faced challenges related to the economic climate and shifting consumer preferences, leading companies to reassess their operational strategies. The report indicated that 2023 saw a rise in job cuts across various gaming studios worldwide, with a notable increase in layoffs occurring during economic downturns.

Experts in the gaming industry have weighed in on Sandsoft's decision, highlighting the implications it may have on the company’s future and the wider gaming landscape. Dr. Rachel Thompson, a professor of Business Management at the University of Southern California, commented, "The gaming industry is at a crossroads, and companies like Sandsoft must adapt to sustain growth. Focusing on publishing can provide new opportunities, but it also raises concerns about the job security of creative talent."

Furthermore, industry analyst Mark Williams of the Gaming Insight Group noted, "These layoffs reflect a strategic pivot that many companies are making in response to market demands. While it’s unfortunate for those who lose their jobs, it is a necessary step for businesses aiming to thrive in a competitive environment."

The impact of these studio closures extends beyond the immediate job losses. Local economies in both Riyadh and Barcelona may feel the repercussions, particularly as the gaming sector continues to play a pivotal role in job creation and technological innovation in these regions.

As Sandsoft moves forward with its publishing-focused strategy, industry observers will be keen to see how the company navigates the challenges of sustaining growth while managing the fallout from these layoffs. The future of gaming in the MENA region, particularly in light of Sandsoft's restructuring, remains uncertain but is poised for further development in the coming years.