Sony Interactive Entertainment has announced that it is shuttering two of its internal development teams in Firewalk Studios and Neon Koi.
Firewalk Studios was acquired by PlayStation in April last year, and earlier this year, in August, the studio released its debut title in Concord. The multiplayer first-person shooter was, however, met with lukewarm reception and disastrous sales, and just two weeks after release, it was pulled offline, while everyone who bought the game was refunded.
In an internal email sent to employees, PlayStation’s co-CEO Hermen Hulst wrote, “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.
“The PvP first person shooter genre is a competitive space that’s continuously evolving, and unfortunately, we did not hit our targets with this title. 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, meanwhile, was acquired by PlayStation in 2022, back when the developer was still known as Savage Game Studios, as part of Sony’s efforts to expand into mobile gaming. Hulst says mobile remains an area that Sony will continue to focus on, but is now looking to do in more strategic fashion, as a result of which Neon Koi and the mobile action game it was working on are both being shut down.
“Expanding beyond PlayStation devices and crafting engaging online experiences alongside our single-player games are key focal areas for us as we evolve our revenue streams,” Hulst wrote in his email. “We need to be strategic, though, in bringing our games to new platforms and recognize when our games fall short of meeting player expectations.
“While mobile remains a priority growth area for the Studio Business, we are in the very early stage of our mobile efforts. 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.
“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.”
“Some” employees from both studios will be offered roles across other internal PlayStation studios, according to Hulst.
“Both decisions were given serious thought, and ultimately, we feel they are the right ones to strengthen the organization,” his email reads. “Neon Koi and Firewalk were home to many talented individuals, and we will work to find placement for some of those impacted within our global community of studios where possible.
“I am a big believer in the benefits of embracing creative experimentation and developing new IP. However, growing through sustainable financials, especially in a challenged economic environment is critical.”
