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News & Current Events Mar 25, 2026 at 5:20 PM

Sony to Shut Down Oscar & Emmy-Winning VFX Studio Pixomondo ('Hugo', 'Game of Thrones' and 'The Boys') Affecting 500+ Workers. Sony Acquired 100% of Pixomondo in 2022.

Posted by ICumCoffee


https://80.lv/articles/oscar-emmy-award-winning-vfx-studio-pixomondo-is-shutting-down

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AChineseSpyBalloon Mar 25, 2026 +1421
It’s been depressing seeing the 2020s mark the collapse of the 2010’s Golden Age of film & TV. Seeing this routinely post-pandemic has been hard.
1421
Treheveras Mar 25, 2026 +591
This is less a mark of the current state of industry and more what VFX studios deal with constantly. Running at losses and needing to shutdown because every film wants a ton of VFX but refuse to pay decent money for it. And VFX houses don't have union protections for standard rates so it's a race to the bottom. I think it was the Life of Pi VFX studio closed down around the same time they won the Oscar for their work. This isn't a post-pandemic problem, it's a worker exploitation problem that's been happening for years.
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mcbeardsauce Mar 25, 2026 +103
I tried to join the 3D industry in the early 2000s. I had no idea how brutal and cutthroat it was.
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fullsaildan Mar 26, 2026 +1
Amen brother. I made it 4 years and then ran away quickly.
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MadManMax55 Mar 25, 2026 +54
While I don't blame us for it, more broadly it's a viewer expectation problem. Amazing VFX used to sell movies. If you could put in the amount of spectacle (relative other movies) of a Lord of the Rings or Avatar there was a good chance that investment would pay off. Which meant that studios could afford to pay VFX houses more and expect a good return. That started to change around the first Avengers for movies and Game of Thrones for TV. Audiences stopped viewing great VFX not as a selling point, but as a baseline requirement for blockbusters. Just look at any Reddit discussion around a Marvel project where the CGI isn't completely perfect. The devaluation of VFX itself, alongside the general devaluation of movies and TV, makes it harder (but far from impossible) for studios to pay VFX houses what they're worth. While VFX workers absolutely deserve the same union protections similar film industry jobs have, the whole system is so precarious right now that it would probably lead to even more studio closures. And not (just) for the typical union-busting reasons.
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Grabthar-the-Avenger Mar 25, 2026 +36
It's not our fault the studios decided movie theaters are unwanted middlemen and they would prefer to sprint garbage onto streaming instead of give people a reason to ever go to the theater If in the 1990s movies came out onto standard cable networks like TNT or TBS just 6 weeks after release akin to the current streaming paradigm no one would have been going to see them back then either The industry self created all these issues
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Street_Anxiety2907 Mar 26, 2026 +7
Agreed, these studios wouldn't agree to direct-to-streaming if they wanted box office numbers.
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amidon1130 Mar 25, 2026 +13
This is a good point and something that kinda drove me nuts during the house of the dragon discourse. I'm not saying that it didn't have problems, but god damn that second season looked f****** amazing and it was fun to watch every week to see what they cooked up.
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ErilazHateka Mar 26, 2026 +1
> Just look at any Reddit discussion around a Marvel project where the CGI isn't completely perfect. I don´t expect cgi to be perfect. I expect it not to be worse than 15 years ago.
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SearchForSocialLife Mar 25, 2026 +18
Maybe I am just a naive idiot, but what stops the VFX houses from forming an union?
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blackpery Mar 25, 2026 +39
They lay off a bunch of people including those that organize, also, union = better working conditions = higher operating costs = higher charges to disney, universal, etc. = no contracts for them
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BrotherNuclearOption Mar 25, 2026 +37
Unions are effective when an alternate labour force isn't readily available, either because you can't just move operations (VFX is easy to offshore and outsource easily), alternate talent isn't available (ex: hard to screw with SAG because everyone that matters is in SAG), or because government regulation forces businesses to come to the table (ie: harsh penalties for union busting). The majority of the international industry would all need to act together to make it work, or the studios will just keep blacklisting shops trying to unionize.
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RedditAdminsAreStans Mar 25, 2026 +16
IATSE is a perfect example of this. They got some decent protections in the last round of negotiations and the industry responded by moving a huge amount of shooting overseas and simply not using IATSE labor or contracts.
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Street_Anxiety2907 Mar 26, 2026 +6
>Unions are effective when an alternate labour force isn't readily available, either because you can't just move operations (VFX is easy to offshore and outsource easily) That's what we thought in software, we'd be safe without unions and now 95% of software development is offshore. Bad idea to assume if you don't stand up for yourself, the psycopath won't shoot you.
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BrotherNuclearOption Mar 26, 2026 +4
We don't disagree. I was responding to the question of why they haven't already been unionizing. My point is that the workers at individual studios lack leverage, unless they can coordinate a broader industry push to unionize.
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monsantobreath Mar 25, 2026 +4
The same thing that stops a Walmart or Starbucks or Amazon warehouse.
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hindusoul Mar 25, 2026 +4
Take the tech of the VFX house, teach someone else the skills to do this cheaper, then close the house that made them what they were
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firelights Mar 25, 2026 +95
Game of Thrones was seriously a marvel for premium tv. 10 episodes every year with amazing production value. I know they took extra time for Seasons 7-8 and those are controversial, but production wise you can see why they needed the extra time. Now every show is 8 episodes every 2.5 years
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1CryptographerFree Mar 25, 2026 +31
I just watched the Chinese version of The 3 Body Problem and was shocked to see it was 30 episodes compared to only 8 for the Netflix adaptation. It’s absurd how short western series are now.
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MethylBenzene Mar 26, 2026 +8
Is the Chinese version the full trilogy? The western version is not finished as of yet. And the story itself was in desperate need of editing down even before adaptation, a direct adaptation sounds horrendous.
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1CryptographerFree Mar 26, 2026 +6
It’s only the first book. Dark Forest comes out next year.
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ImmortalMoron3 Mar 25, 2026 +8
Started the same time like clockwork too, mid-April. I was ending my first year of uni when the first season aired and it was kinda neat that Game of Thrones premiering would always mark the end of the school year.
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BON3SMcCOY Mar 25, 2026 +22
Games industry is doing the same thing
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Surturiel Mar 25, 2026 +7
Don't forget the game industry too.
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Flashy_Jello_9520 Mar 26, 2026 +5
The 2023 strike really was the turning point. Before thst I couldn’t throw a rock and not get hired. Now maybe a few weeks here and there.
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bald_and_nerdy Mar 26, 2026 +1
Yeah because they were paying the vfx crew peanuts for Picassos.  Now that that trick doesn't work their formula falls apart.  Just like Uber having to pay benefits.  If you're business only works because of taking advantage of people you have a shitty business
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CLGToady Mar 26, 2026 +1
Better Call Saul, Pluribus, and Severance make me think that TV today isn't so bad
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AChineseSpyBalloon Mar 26, 2026 +1
That's very anecdotal - like using a couple of hot days to argue against climate trends. A few standout series don’t really disprove the overall decline of production turnaround & that the industry is overall producing less.
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CLGToady Mar 26, 2026 +1
I feel like the golden age in the 2010's that people refer to is basically just made up of a handful of TV shows too though. Breaking Bad, Mad Men, GoT, and maybe Black Mirror are the shows that stand out to me in the 2010's. I'm not saying that it's better now, it just seems that a few strong shows carried the "golden age" and there's still a few post pandemic shows that are carrying television today
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HailToTheVic Mar 26, 2026 +1
I mean there are a shit ton of good shows in the last 6 years that’s kind of on you for not watching them.
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Dr_MantisTobaggin_MD Mar 25, 2026 -1
I view the 2010s as one of the worst decades for movies ever. Never was there so few movies with an increasing race to the bottom to replace set design with vfx
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IowaJammer Mar 25, 2026 +512
Step 1: Buy Competitor Company Step 2: Shut Down Company Step 3: Reduce Quality of Product Repeat
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jeperty Mar 25, 2026 +69
Actually this is a case of building on the product but no productions wanting to use the product because costs and moving away from huge tv vfx like the GoT dragons. It's just a result of the industry being shit right now.
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Flashy_Jello_9520 Mar 26, 2026 +9
Step 4: line goes up, You get bonus.
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CanadianTrashInspect Mar 25, 2026 +15
Capitalism breeds competition!
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nikospkrk Mar 26, 2026 +1
Step 4: increase profits.
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Gwoardinn Mar 26, 2026 +1
Ensloppification
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kain459 Mar 25, 2026 +200
Sony been striking out since they sold KPOP to netflix.
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MrMindGame Mar 25, 2026 +146
Since they bought Bungie for almost $4 billion.
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Kaldricus Mar 26, 2026 +38
Bungie absolutely *fleeced* Jim Ryan and Sony. Anyone that's paid attention to Bungie since they left Microsoft would know that was batshit insane.
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HaikusfromBuddha Mar 26, 2026 +13
This whole week has been a mess. Crunchy roll got hacked so everyones credit card information was leaked. They shut down another game studio I think they closed one last month. Marathon is apprently not doing well. They canceled their Car collab with Honda. They are the 20th ranked publisher I believe both Nintendo and Xbox are ranked better. A whole week of L's like this is crazy imo.
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lazzzym Mar 25, 2026 +63
Still crazy to read that.... what an absolute waste of money for a studio that was already burning through so much cash that even Microsoft wouldn't touch them.
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WeWantLADDER49sequel Mar 25, 2026 +1
Who had a profitable property in destiny and just launched a new live service game to nearly perfect reviews. Investments take time to pay off sometimes.
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Ehh_littlecomment Mar 26, 2026 +10
If you consider a 20x PE ratio, Bungie needs to make 200 mil a year in profit with a growth of about 15-20%. It’s a numbers game and the numbers aren’t there. At least they didn’t pay 70 bil for COD which cratered immediately after acquisition or 7.5 bn for Starfield lol.
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AwsmGuy145 Mar 26, 2026 +2
to be fair, acquiring Bungie was supposed to be a part strategic acquisition, not just profiting from destiny dlc money, as Sony wanted to create more GaaS titles and they would use the “knowledge” of Bungie devs to help their first-party studios. obviously they have since cancelled TLoU live service game as well as Concord flopping flat on its face causing them to step back from those plans. still sucked ass for Sony with this acquisition
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Ehh_littlecomment Mar 26, 2026 +1
Whenever an acquisition doesn’t make sense, the management always defaults to “synergies” and it almost never works out.
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blames_the_netcode Mar 26, 2026 +1
Nearly perfect? Not even close, and the player counts are already starting the death spiral.
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ArchDucky Mar 25, 2026 +25
You always hear these stories. You know like Blockbuster not buying Netflix or Will Smith turning down The Matrix... but Sony not understanding KPOP would be huge when they literally started this new stylized CG Animation craz is seriously baffling.
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DaoFerret Mar 25, 2026 +16
Throw in Borders Books deciding to completely outsource its online presence to this new company, Amazon, instead of building out their own online presence.
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Anagoth9 Mar 25, 2026 +12
Borders biggest issue was  saying, "Who wants to read books on a tablet?" 
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Puppetmaster858 Mar 25, 2026 +3
A big reason it was huge is because it released on Netflix first
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Dazzling-Slide8288 Mar 25, 2026 +7
That's not a crazy move. That movie is a nothing release without being on netflix first.
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CaravelClerihew Mar 26, 2026 +1
KPOP would not be anywhere as big as it is if it didn't release on Netflix.
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Nfl_porn_throwaway Mar 25, 2026 +54
Video game industry and vfx industry. Not even once.
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[deleted] Mar 25, 2026 +98
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SpaceOdysseus23 Mar 25, 2026 +108
It's not just Concord. It's wasting 3.6 billion on Bungie, it's wasting hundreds of millions on whatever live-service plan Hulst and Ryan concocted. Their gaming division has been an absolute clusterfuck in the PS5 era. They're lucky the competition is even more incompetent.
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RefinedBean Mar 25, 2026 +16
So long as they get SAROS released, 's all I care about this year.
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Please_HMU Mar 25, 2026 +4
Same
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amidon1130 Mar 25, 2026
I'm so f****** pumped, I wasn't interested in returnal but I got it for free on a whim since it's free on playstation plus and holy shit what a banger.
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RefinedBean Mar 25, 2026 +1
Seriously one of the best games released in the past decade, I'm so glad Sony saw what they had and invested more in Housemarque. Can't wait to see how they iterate on it.
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amidon1130 Mar 25, 2026
You know a combat system is well designed when they can add one thing (a shield) and I'm like god damn the game has totally changed!
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Kaldricus Mar 26, 2026 +1
Returnal is so f****** good, and has one of the best boss fights I've ever experienced
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bahumat42 Mar 25, 2026 +1
Yeah marathon is shaping up to not be the hit they needed.
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[deleted] Mar 25, 2026
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bongo1138 Mar 25, 2026 +10
Nintendo's ramping down production on Switch 2 because it's not selling well enough. They're doing okay, but not great. EDIT: Since you're all trying to point to it being the fastest selling console ever as evidence against this... that's not what I'm saying. Things slowed down. [https://www.ign.com/articles/nintendo-switch-2-production-cut-33-following-weak-holiday-sales-report-claims](https://www.ign.com/articles/nintendo-switch-2-production-cut-33-following-weak-holiday-sales-report-claims) Reminder that over the Holidays, the Switch 2 failed to outsell the 5 year old PS5, which is also more expensive. It's not over for the Switch 2, that's not what I'm saying. But they're not selling like they figured they would.
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tkflash20 Mar 25, 2026 +6
Nintendo needs some Switch 2 defining games to sell it. There is no Mario Odyssey or Breath of the Wild to sell the platform. DK Bonanza is the best they have at the moment and it's not close to a platform pusher.
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bongo1138 Mar 25, 2026 +2
I agree. I don’t have one but ignoring a Mario will be hard.
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bahumat42 Mar 25, 2026 +1
I expect the switch 2 to do ok over its life, as more must play games like mario or a new animal crossing or zelda arrive it will get more traction, it is a good little device.
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[deleted] Mar 25, 2026 -1
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Itchy-Beach-1384 Mar 25, 2026 +1
You have reposted a screenshot a thousand times and don't have a link to the actual data. Your tweet comes off as misinformation in the face of Nintendo announcing failure to meet sales explications.
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thief-777 Mar 25, 2026
That is the actual data, lol. Matt Piscatella is the source. >in the face of Nintendo announcing failure to meet sales explications. Literally wasn't Nintendo, it was a Bloomberg "analyst" renowned for being totally wrong all the time. Talk about misinformation... *Dummy blocked me, lol. 'Twitter dude' is literally the Executive Director and Video Game Industry Analyst at Circana (NPD), literal source of the data from retailors.
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Itchy-Beach-1384 Mar 25, 2026 +1
>source is Twitter dude Lmao
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amazinglover Mar 25, 2026 +1
They also massively ramped up production to make sure they didn't run out stock. It could be selling great just not to the levels they ramped up for.
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FraGough Mar 25, 2026 +5
Bluepoint too. Games industry response was basically "wtf are you doing, Sony?"
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KingMario05 Mar 25, 2026 +1
Their car venture with Honda just got shut down, too. That can't have been c****.
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O868686 Mar 25, 2026 +7
This is Sony Pictures not Sony Interactive Entertainment.
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Vanrax Mar 25, 2026 +2
A subsidiary is still going to feel the impact. Sony Group Corporation is the overhead.
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KingMario05 Mar 25, 2026 +1
Same damn hydra. Aren't they selling half of the TV unit to TCL, too? Jesus.
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[deleted] Mar 25, 2026 +6
[deleted]
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Alone-Farmer-5410 Mar 26, 2026 +2
There are always risks; the difference is that it belongs to the Sony Group, unlike Paramount and Warner, which had enormous debts and were independent.
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KingMario05 Mar 25, 2026 +1
At th very least, SPE is. Can see Samsung making Tokyo an offer it can't refuse. Apple as well, if it's on the c**** side.
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Vanrax Mar 25, 2026 +3
That and Marathon. They put a lot into Marathon.
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TheBeardedDen Mar 25, 2026 +2
You do know that Switch 2 production is slowing down? You seem to keep deny this fact angrily towards others. They did not sell as much as they wanted and are cutting back. Stop posting that they managed to sell more than 5 year old consoles as any proof against their factual statements they made of under performing. https://www.bloomberg.com/news/articles/2026-03-24/nintendo-cuts-switch-2-output-by-over-30-on-weak-holiday-sales https://www.gonintendo.com/contents/59134-bloomberg-nintendo-to-cut-switch-2-production-by-30-this-quarter-after-slower-than Stop being wrong. Calm down. Fix your original post pretending Nintendo is doing okay.
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Worried_Position_466 Mar 25, 2026 +1
I mean, they're still doing fine. They still have a shit ton of cash. They were fine after the Wii U and the GameCube. This is nothing compared to that. They aren't shuttering developer's companies. They aren't laying off hundreds of people. They aren't investing hundreds of millions to BILLIONS into buying studios that are churning out mediocre trash that gets abandoned right away. Denying they're okay is delusional.
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ArchDucky Mar 25, 2026 +1
Sony didn't just lose money on Concord. They had most of their studios working on GaaS games as well. There was a Last of Us one, A Spidey one, A god of war one... etc. They spent billions and forced their first party studios to basically waste their time on these games. Thats why their first party output has been so bad this year. So not only were they not making the games people wanted, but they also are now years behind on those games due to this push. They also kicked out the CEO that made them chase that rainbow.
1
Vandergrif Mar 25, 2026 +1
> At least Nintendo is doing well Nintendo, the company famously dependent on the sales of its hardware because they don't sell software anywhere else? Hardware whose production is dependent on parts that are currently surging in demand from AI companies and server farms? Companies that have considerably more money to negotiate and pay for those parts than what Nintendo is liable to be able to negotiate for because if Nintendo pays too much per part to manufacture then the consoles they try to sell won't be able to turn a profit? It's infeasible to sell a console at typically (relative to other platforms) c**** Nintendo price points for the kind of cost it's going to require to produce them. They're fine for now based off existing manufacturing deals and the stock that has already been produced, but that won't last forever.
1
Advancedsnark Mar 25, 2026 +26
Did anyone see producer Patrick’s post about a giant cgi studio just built in India? It’s on Instagram.
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lostinspaz Mar 25, 2026 +8
coincidence? i think NOT!
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KingMario05 Mar 25, 2026 +41
God damn, Sony is melting down this week. Condolences to all impacted.
41
WardenWolf Mar 25, 2026 +15
Sony basically just saying "Give us your IP and get out."
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ClydeStyle Mar 25, 2026 +7
Jesus it’s like the 2020’s is the banking version of the 90’s-00’s crisis. They keep canibalizing each other.
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Juuiken Mar 25, 2026 +15
I am developing a real hate for Sony...
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fear730 Mar 26, 2026 +4
Same here between the PlayStation feeling like a downgrade from the last couple of generations and now reading this I’m just sick of it… let them keep diggin that hole
4
IceCoughy Mar 25, 2026 +5
Acquisitions are a death sentence
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Stunning_Bed23 Mar 25, 2026 +2
Sony f****** up lately.
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crunchnecessary Mar 26, 2026 +1
Yeah. Sora being “turned down” has something to do with this. I feel it What the hell did it make
1
Filmmagician Mar 26, 2026 +1
Why….
1
BigfootsBestBud Mar 26, 2026 +1
Just incredibly depressing seeing what’s happening to creative industries. 
1
VideoGamesForU Mar 26, 2026 +1
And then there are gooner animators out there making a shitton of money with way less work. Ugh
1
Riparian72 Mar 26, 2026 +1
Getting this sneed after PlayStation shut down another game studio. Guess something is happening at Sony.
1
leckmichnervnit Mar 26, 2026 +1
Bro tf is Sony doing lmao. I sure hope all these closures will backfire on them BADLY.
1
ripyourlungsdave Mar 25, 2026
Finally taking hints from the gaming industry, I see.
0
psychoacer Mar 25, 2026 -1
Luckily we have AI said no one with a brain cell ever
-1
Falconman21 Mar 26, 2026
Would not surprise me at all if the rapidly increasing costs of computer parts is affecting the viability of VFX. Rendering VFX and AI use the exact same hardware. Practical effects are experiencing a bit of a resurgence, and it wouldn’t surprise me if suddenly the cost equation doesn’t favor VFX to the same degree.
0
xatoho Mar 26, 2026
Corporations are not people, they are parasitic vampires.
0
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