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Sony Closes Two Studios Following Concord’s Underperformance

by | Oct 30, 2024 | News, Video Games | 0 comments

Firewalk Studios

Sony Interactive Entertainment has announced the closure of two of its development studios, Firewalk Studios and Neon Koi, following the underperformance of Firewalk’s sci-fi shooter Concord.

Released in late August, Concord was intended to be a flagship live-service title, but it struggled to gain traction in a crowded gaming market and was taken offline just two weeks after launch. Sony then announced the permanent closure of Firewalk Studios, issuing refunds to players and attributing the decision to a need to align with “near and long-term business priorities.”

Firewalk Studios, acquired by Sony in 2021, was tasked with developing Concord, a sci-fi first-person shooter designed to be the cornerstone of PlayStation’s live-service offerings. However, the game’s inability to meet player expectations led to its rapid decline and subsequent removal from digital storefronts. In response to the game’s disappointing performance, Sony made the difficult decision to close Firewalk, laying off the majority of its workforce, with a reported total of 210 job losses across both studios.

Hermen Hulst, CEO of Sony Interactive Entertainment, acknowledged the contributions of the Firewalk team in an internal email to employees, stating, “I want to thank all of Firewalk for their craftsmanship, creative spirit, and dedication.” He said that while certain aspects of Concord were promising, the studio’s closure was the “best path forward.” 

Firewalk’s farewell message on social media celebrated the team’s achievements, including developing the game on Unreal Engine 5 and the ambition of combining gameplay elements, such as card battlers and fighting games with traditional first-person shooter mechanics. The studio acknowledged the risks taken during the development process, emphasizing the importance of innovation in pushing the gaming medium forward, even if some ideas did not resonate as anticipated.

In addition to Firewalk, Sony is also closing Neon Koi, the mobile game studio formerly known as Savage Game Studios. Acquired in 2022, Neon Koi was tasked with expanding Sony’s presence in the mobile gaming sector. However, the studio had been operating without a released game and was working on an unannounced action title that will not be moving forward. The closure of Neon Koi shows that Sony is still figuring out its mobile strategy, which Hulst described as being in its “very early stage.” He expressed a need for mobile titles to align with PlayStation Studios’ pedigree and to have the potential for broader global appeal.

This news comes on the heels of layoffs within Sony’s gaming division earlier this year, where nearly 900 workers were laid off including the closure of its London Studio. As PlayStation looks to solidify its position in emerging markets like live-service and mobile gaming, the company faces the challenge of balancing innovation with the demands of a highly competitive industry.

Written By Rikki Almanza

Rikki is a writer for American Legion Gaming. With a deep-rooted connection to the military, a spouse who is a Navy veteran, a father who served in the Air Force for 25 years, and a grandfather who proudly served, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.

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