It's not unusual for Sony to sign exclusivity deals with studios only to snatch them up sometime later. Most recently, Sony did this to Haven Studios and Firewalk. But, while most expected Sony to do the same to Deviation Games, it appears that this isn't going to happen.

According to reports, Deviation Games has cut up to 90 staff members after co-founder, Jason Blundell, left last year.

Deviation Studio was founded by Call of Duty veterans Dave Anthony and Jason Blundell. The studio signed an exclusivity deal with Sony to develop a new IP two years ago, which was revealed in an official PlayStation Blog post. At the time, the budding studio showed signs of potential and it appears Sony dedicated an excess of $50 million to the said budget.

Unfortunately, the studio has yet to make any headway despite the substantial financial input, casting a shadow of doubt and uncertainty over the company's future endeavors.

To make matters worse, the cuts in the workforce have raised eyebrows and questions about the company's long-term plans. Layoffs are often a sign of internal struggles. In the case of Deviation Games, it adds to the company's growing list of issues.

This just goes to show that massive financial backing doesn't always guarantee success for new startups.

The news of a team of Destiny and Call of Duty veterans bonding together to create what's presumed to be a co-op first-person shooter initially made waves within the gaming community. But, a lot has changed since.

If it's any consolation, while the current state of affairs at Deviation Games is a cause for concern, it's not indicative of the company's downfall.

The studio has a chance to bounce back and recover from the underwhelming progress of its PS5 projects and significant layoffs. This crisis marks an opportunity to reassess, make changes, and come back stronger.

With the EU expected to approve the Activision-Blizzard acquisition by Microsoft, Sony is in desperate need of a Call of Duty alternative.

We're not saying such expectations are on Deviation Games' shoulders, but it wouldn't hurt Sony to have a AAA co-op shooter.