Sony Interactive Entertainment is closing two of its studios, Neon Koi and Firewalk Studios. The move impacts numerous employees across both studios.
Ugh. More bad game industry news, this time from Sony. Firewalk is shutting down. ☹️
(@jasonschreier broke the story first) https://t.co/GKxilLwbfc
— Ryan McCaffrey (@DMC_Ryan) October 29, 2024
Hermen Hulst, CEO of Sony’s Studio Business Group, cited the need to align projects with business priorities as the main reason for the closures.
In a statement to employees, Hulst explained that the decision came after a thorough evaluation of Sony’s games portfolio. “Mobile remains a priority growth area for the studio business,” Hulst said.
Sony's closure today of two studios — Concord developer Firewalk Studios and mobile game maker Neon Koi — will result in 210 people losing their jobs, a spokesperson tells Bloomberg News. Firewalk had 172 employees, while Neon Koi had 38. https://t.co/ksiVFpfWLs
— Jason Schreier (@jasonschreier) October 29, 2024
However, the company needs to focus on titles that align with PlayStation Studios’ reputation and can potentially reach a global audience.
BREAKING: Sony is shutting down Firewalk Studios, the maker of the recent shooter Concord.
— Jason Schreier (@jasonschreier) October 29, 2024
Sony aligns projects, closes studios
For Firewalk Studios, Hulst mentioned that Sony had explored several options over the past few months but ultimately decided to “permanently sunset the game and close the studio.”
The exact number of employees affected by these closures is unclear. According to LinkedIn, the impacted studios employ a significant number of people.
Firewalk is signing off one last time.
Firewalk began with the idea of bringing the joy of multiplayer to a larger audience. Along the way we assembled an incredible team who were able to:
– Navigate growing a new startup into a team during a global pandemic: Firewalk was…— Firewalk (@FirewalkStudios) October 29, 2024
“I know none of this is easy news to hear, particularly with colleagues and friends departing SIE,” Hulst acknowledged. “Both decisions were given serious thought, and ultimately, we feel they are the right ones to strengthen the organization.”
Hulst said the studios were home to many talented individuals, and Sony will work to find placement for some of those impacted within its global community of studios where possible. He concluded on a hopeful note, emphasizing that despite the closures, there is much to look forward to from Sony’s Studio Business Group and its teams.
“I remain confident that we are building a resilient and capable organisation driven by creating unforgettable entertainment experiences for our players.”
The closures come in the wake of other challenges Sony has faced in the live service games sector.
