Today Sony Interactive Entertainment announced that it will shut down two of its PlayStation Studios. Specifically, Firewalk Studios and Neon Koi will be closed with the inevitable layoffs that come as a consequence.
Neon Koi was acquired by Sony in 2022 to bolster its mobile gaming initiative when it was still named Savage Game Studios. It was then rebranded in late 2023. The mobile action game the studio was working on for PlayStation will also be shelved.
According to an internal letter shared by Studio Business Group CEO Hermen Hulst, Sony’s mobile efforts are in a very early stage (apparently, they have been in an “early stage” since 2016 when Sony launched ForwardWorks, but what do we know), and achieving success will require focusing “on titles that are in-line with PlayStation Studios’ pedigree and have the potential to reach more players globally. “
Firewalk was acquired in mid-2023 from ProbablyMonsters, and it’s known for the recent release of Concord, which was pretty much a disaster. It was part of PlayStation Studios’ live services push.
Hulst argues that “after much thought,” Sony has “determined the best path forward is to permanently sunset the game and close the studio.”
He also mentions that the company will learn lessons from Concord and “continue to advance our live service capabilities to deliver future growth in this area. “
Hulst adds that he “remains confident” that PlayStation is “building a resilient and capable organization driven by creating unforgettable entertainment experiences for its players.”  Â
Back in August, Sony’s CFO and COO Hiroki Totoki mentioned that the corporation intended to “optimize its development projects in order to consistently and continuously release hit titles.”
Sony will announce its quarterly financial results soon. We’ll see if its executives will provide more color on this.
