Sony Closes 2 PlayStation Studios Months After ‘Concord’ Video Game Flop

Sony Interactive Entertainment has shut down Neon Koi and Firewalk Studios.
Sony Closes 2 PlayStation Studios Months After ‘Concord’ Video Game Flop
The logo for PlayStation during a media event by the Team Asobi studio at the offices Sony Interactive Entertainment in Tokyo on Aug. 29, 2024. Philip Fong/AFP via Getty Images
Audrey Enjoli
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Sony Interactive Entertainment (SIE), a subsidiary of Sony Group Corporation, has announced the shutdown of Neon Koi and Firewalk Studios, two PlayStation software development studios the entertainment giant acquired in recent years.

In an internal email sent to staff, which was subsequently shared online on Oct. 29, Hermen Hulst, the CEO of SIE’s Studio Business Group, said the closures were made to help bolster the company’s ongoing business strategies.

“We consistently evaluate our games portfolio and status of our projects to ensure we are meeting near and long-term business priorities. As part of our ongoing efforts to strengthen SIE’s Studio Business, we have had to make a difficult decision relating to two of our studios—Neon Koi and Firewalk Studios,” Hulst wrote.

“I know none of this is easy news to hear, particularly with colleagues and friends departing SIE. Both decisions were given serious thought, and ultimately, we feel they are the right ones to strengthen the organization.”

Hulst said both studios were “home to many talented individuals,” adding that his team would try to find new opportunities within Sony’s global network of studios for some of those affected by the layoffs.

Sony acquired Firewalk Studios in April 2023, approximately five years after its founding. The Bellevue, Washington-based studio took to X, formerly Twitter, to bid farewell to fans and followers after news of its closure was made public.

“Firewalk is signing off one last time,” the company wrote in part. “The talent at Firewalk and the level of individual craft is truly world-class, and teams within Sony Interactive Entertainment and across the industry will be fortunate to work with them.”

Video Game Flop

Sony’s announcement follows the disastrous launch of the PlayStation hero shooter game “Concord” on Aug. 23.

The video game, produced by Firewalk Studios, was removed from online access two weeks after its debut.

“We have decided to take the game offline beginning September 6, 2024, and explore options, including those that will better reach our players,” Ryan Ellis, who served as Firewalk Studios’ game director at the time, wrote in a Sept. 3 blog post.

“While we determine the best path ahead, Concord sales will cease immediately and we will begin to offer a full refund for all gamers who have purchased the game for PS5 or PC.”

Hulst addressed the video game’s failure in his memo, writing that “certain aspects of Concord were exceptional, but others did not land with enough players.”

“The PvP first person shooter genre is a competitive space that’s continuously evolving, and unfortunately, we did not hit our targets with this title,” Hulst noted. “We will take the lessons learned from Concord and continue to advance our live service capabilities to deliver future growth in this area.”

Formerly known as Savage Game Studios, Neon Koi, which had offices in Berlin and Helsinki, was another recent addition to Sony’s portfolio. The software company was acquired in August 2022.

At the time of Neon Koi’s shutdown, the studio was in the process of developing a mobile action game. Hulst indicated that the project would not be moving forward.

“While mobile remains a priority growth area for the Studio Business, we are in the very early stage of our mobile efforts,” the exec wrote. “To achieve success in this area we need to concentrate on titles that are in-line with PlayStation Studios’ pedigree and have the potential to reach more players globally.”

Gaming Industry Layoffs

Sony’s recent layoffs appear to represent a growing trend within the video game industry.
According to the analytics tech firm HRForecast, more than 10,000 game developers were laid off in 2023. An additional 8,000 were let go in the first two months of this year, Fast Company reported in February.

In a statement issued on Oct. 31, the media labor union Communications Workers of America criticized Sony for its recent studio closures.

“These decisions by highly insulated video game CEOs are creating perilous working conditions for video game workers by eliminating their job stability,” the union wrote.

“Alongside these layoffs, Sony’s decision to dissolve studios outside their walled garden of PlayStation-exclusive content rather than making games that have to compete in the highly diverse and competitive mobile game market should be a cautionary warning sign of Sony’s interest in furthering its monopoly position in the video game industry,” the union added.

“CWA plans to raise the anti-competitive impacts of Sony’s increasing monopoly and monopsony power with the appropriate antitrust regulators, policymakers, and stakeholders.”

The Epoch Times reached out to Sony Interactive Entertainment for comment but a response was not received by publication time.