• Sony closes Concord studio and permanently shuts down the game Return.

Sony Shuts Down Firewalk Studios and Neon Koi Amidst Live Service Struggles

Sony Interactive Entertainment has announced the closure of two of its studios: Firewalk Studios and Neon Koi. This decision comes after the disastrous launch and subsequent shutdown of Firewalk’s live-service title, Concord, and reflects Sony’s ongoing evaluation of its live service strategy.

Concord’s Disappointing Performance

Concord, a PlayStation 5 and PC exclusive, launched on August 23rd but was pulled offline just two weeks later due to poor sales. Estimates suggest that the game sold fewer than 25,000 units, with its Steam player count failing to surpass even the underwhelming launch of The Lord of the Rings: Gollum.

In a message to PlayStation staff, Hermen Hulst, CEO of the PlayStation studio business group, acknowledged Concord‘s failure to meet Sony’s expectations. He stated:

“We have spent considerable time these past few months exploring all our options. After much thought, we have determined the best path forward is to permanently sunset the game and close the studio. I want to thank all of Firewalk for their craftsmanship, creative spirit and dedication.”

Sony’s Live Service Shift

While Concord‘s failure is undoubtedly a blow, Sony maintains that it remains committed to the live service gaming model. Hulst emphasized this commitment, stating:

“We will take the lessons learned from Concord and continue to advance our live service capabilities to deliver future growth in this area.”

Neon Koi’s Closure

Alongside Firewalk Studios, Sony is also shutting down its mobile game development studio, Neon Koi. Despite previously expressing its dedication to mobile gaming, the company has decided to discontinue the unannounced triple-A mobile action game that Neon Koi was developing.

Hulst explained:

“With this re-focused approach, Neon Koi will close, and its mobile action game will not be moving forward. Both decisions were given serious thought, and ultimately, we feel they are the right ones to strengthen the organization.”

Impact on Developers

The closure of both studios will result in job losses for the impacted developers. While Sony has mentioned that some developers might be offered positions within other PlayStation studios, many will likely join the growing number of individuals affected by layoffs in the gaming industry.

Stay tuned for further updates on Sony’s evolving live service strategy and the future of its game development initiatives.