Former developers of futuristic racing classic WipEout - including the series’ co-creator - have formed a new studio with the co-creator of Skate to work on a new sci-fi sports game.

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Sony-acquired studio Firesprite has recently suffered high profile exits amid accusations of a toxic workplace culture, Eurogamer has been told, as part of an investigation into the studio begun ahead of the layoffs announced by Sony this week.

The Liverpool-based developer released PlayStation VR2 launch title Horizon Call of the Mountain last year, after being acquired by Sony in 2021. But the impact of crunch for that game's release and changes in the company's senior leadership have subsequently led to discontent within the studio, staff have told Eurogamer - something one source described as "death by a thousand cuts".

Most concerning are reports from sources that two senior leaders from Sony support studio XDev, brought in to help lead Firesprite, have since been accused of sexual discrimination and ageism. A subsequent internal investigation by Sony is said to have resulted in the claims being dismissed as a "misunderstanding".

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UPDATE 11.49pm: Following reports Horizon Forbidden West developer Guerrilla Games has cut jobs as part of Sony's decision to lay off 900 workers across its PlayStation teams, Spider-Man studio Insomniac Games has confirmed it's also been affected.

"Like several other teams across SIE and PlayStation Studios," the developer wrote in a statement shared on social media, "Insomniac Games was impacted by yesterday's layoffs. There are no sufficient words to express our feelings about it. This is a solemn and unprecedented moment for our studio."

"We are focusing our energy on helping everyone affected through this challenging time," the studio's statement continued. "For those who are hiring, there are great people seeking new roles who made important contributions to Insomniac's history. We're extremely grateful for them and they will be missed".

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