Though Sony eventually decided to shut down SIE London Studio, Dreams studio Media Molecule was also a candidate for closure, it's been claimed.
Reports indicate that while the PC and PS5 versions of Dreams were near-complete, the releases have been cancelled.
By laying off roughly 20 of its 135 employee workforce, Media Molecule aims to reduce its headcount to a 110.
As one of Sony's most successful consoles, the PlayStation 4 is home to some of the best games ever. Check out 30 of them here.
Premium subscribers can also look forward to MediEvil: Resurrection, Ape Escape: On the Loose and Pursuit Force: Extreme Justice.
Media Molecule's "biggest creation" yet will launch alongside over 550 new elements, allowing players to create and customize tracks.
All three titles are available from August 1st to September 4th and are also playable by PlayStation Plus Extra/Premium subscribers.
Ahead of support for the game ending later this year, Media Molecule will now allow players to music, animation, films and art created in Dreams to be used outside of the game.
Healey co-founded Media Molecule in 2006 and would go on to direct LittleBigPlanet, LittleBigPlanet 2, and Dreams.
Media Molecule won't be releasing any new content updates for Dreams past September 1, though players will still be able to play, create, and share.
400,000 scenes and 400,000 elements have also been created since launch. The toolset has also helped some users find positions in the gaming industry.
Ancient Dangers: A Bat's Tale is a new co-op dungeon crawling game, while DreamShaping is getting revamped to improve the creation suite.
Ancient Dangers: A Bat's Tale is a new original game made by Media Molecule, coming to Dreams later this year.
Megapenguin Rehatched calls back to one of Dreams' more special E3 presentations, and presents the beginning of a ongoing collaborative community-driven project.
It seems Sony plans to keep investing in the Dreams and LittleBigPlanet studio.
These PS4 titles look good but they can look even better on PS5.
New features like Starting Points and a balance pass on existing instruments are also incoming.
The industry vet departs after nearly 15 years at the studio.
New ways to create in Media Molecule's hybrid.
The year has showcased some incredible visual styles all around.
