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Sony Interactive Entertainment announced the shutdown of two studios, Firewalk Studios and Neon Koi, with the reason of reorganization strategies as Sony's focus continues to shift in the games sector.
Firewalk Studios, acquired by Sony last April, launched its first game in August: Concord, a multiplayer first-person shooter.
However, Concord received a lukewarm response, and due to poor sales, Sony decided to take the game offline within two weeks of its launch and refunded all purchases.
In an internal note, PlayStation co-CEO Hermen Hulst acknowledged that with Firewalk, "When certain elements came together well, the game just couldn't attract enough players."
Sony eventually decided to shut down Firewalk, with Hulst thanking the studio for "their craftsmanship, their creative spirit, and their dedication". Hulst underscored the competitiveness surrounding the PvP first-person shooter genre and said, despite Concord not meeting those targets, these lessons learned will inform Sony's future forays into live service games.
Neon Koi - previously known as Savage Game Studios - was acquired by Sony in 2022 as part of the company's efforts to expand its mobile gaming footprint.
As mobile gaming still remains a point of priority for Sony, according to Hulst, it requires more strategic thinking. Thus, Neon Koi will be closed down, and the development of its mobile action title will stop, Sony decided.
Hulst further reiterated his commitment by Sony to quality online experiences and providing more variety on platforms but said that titles must meet the standard set by PlayStation Studios and appeal to the widest audience possible.
Some staff at both studios will transition to other roles in the PlayStation Studios teams.
Hulst underscored a commitment from Sony to creative experimentation and the development of IP, but noted that growth needed to be sustainable, particularly in harder economic times.
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