PlayStation Interactive Entertainment announced the closure of two of its studios: Firewalk Studios and Neon Koi.
Firewalk Studios is best known for developing Concord, the failed hero shooter that shut down just two weeks after its launch. Concord was taken offline on September 6th with refunds issued to anyone who purchased it. At the time, Sony and the the developers were said to be exploring options for the game. Ultimately, Sony determined that the best path forward was to just permanently sunset the game.
Hermen Hulst, CEO, Studio Business Group, Sony Interactive Entertainment, issued the following statement to SIE employees on the studio's closure:
Regarding Firewalk, as announced in early September (An Important Update on Concord), certain aspects of Concord were exceptional, but others did not land with enough players, and as a result we took the game offline. 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.
Acknowledging that the PvP first person shooter genre is a competitive space that's always evolving, Hulst admitted that Sony did not hit its mark with Concord and that they will take these lessons to apply them to future live service titles down the line.
It's reported that Concord cost a staggering $400 million to develop and is Sony's biggest released game by budget to date, as well as the company's biggest loss.
Firewalk Studio isn't the only Sony developer shutting down. Neon Koi, a PlayStationStudio focused on releasing mobile games, will also close. The German developer, previously known as Savage Game Studios, was purchased by Sony in 2022 and rebranded as Neon Koi last year.
Neon Koi was developing a mobile action game, though we don't have many other details. The game will not be moving forward.
Despite the closure of Neon Koi, Sony says that mobile "remains a priority growth area for the Studios business."
"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," Hulst stated. "With this re-focused approach, Neon Koi will close, and its mobile action game will not be moving forward. I want to express my gratitude to everyone at Neon Koi for their hard work and endless passion to innovate."
Bloomberg reports that around 38 people will lose their jobs at Neon Koi, although Sony is trying “to find placement for some of those impacted within our global community of studios where possible."