Sony Interactive Entertainment (SIE) recently announced the closure of Firewalk Studios following the decision to sunset its live-service game “Concord” in September. PlayStation has also decided to close Neon Koi, marking a shift in focus for SIE as it realigns its studio strategy.
PlayStation’s CEO of Studio Business, Hermen Hulst, shared the news in a memo to staff, emphasizing that the closures were made with careful consideration. “I know none of this is easy news to hear, particularly with colleagues and friends departing SIE,” he noted.
“Both decisions were given serious thought, and ultimately, we feel they are the right ones to strengthen the organization. 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.”
Concord, which went offline on September 6, was created by Firewalk Studios, a studio acquired by PlayStation just over a year and a half ago.
Sales are estimated to be below 25,000, with Concord reaching an all-time peak of only 697 players on Steam.
According to Hulst, while certain elements of the game showed promise, it ultimately didn’t engage enough players to meet expectations. “We have spent considerable time these past few months exploring all our options,” he explained. “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.”
Neon Koi, previously known as Savage Game Studios, was acquired by Sony in 2022 and rebranded in 2023.
Focused on mobile game development, the studio was closed as part of a strategic shift. Hulst highlighted that mobile gaming remains an area of growth for PlayStation but emphasized the importance of titles that align with the quality and reach PlayStation is known for. “With this re-focused approach, Neon Koi will close, and its mobile action game will not be moving forward,” he explained.
These changes come after other recent restructuring efforts at SIE, including significant staff reductions at Bungie, which Sony acquired in 2022.
Below is Hulst’s complete letter to employees.
”Dear Team,
Today, I want to share some important updates from Sony Interactive Entertainment’s Studio Business Group.
We consistently evaluate our games portfolio and status of our projects to ensure we are meeting near and long-term business priorities. As part of our ongoing efforts to strengthen SIE’s Studio Business, we have had to make a difficult decision relating to two of our studios – Neon Koi and Firewalk Studios.
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. 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.
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.
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.
I know none of this is easy news to hear, particularly with colleagues and friends departing SIE. Both decisions were given serious thought, and ultimately, we feel they are the right ones to strengthen the organization. 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.
While today is a difficult day, there is much to look forward to in the months ahead from the Studio Business Group and our teams. I remain confident that we are building a resilient and capable organization driven by creating unforgettable entertainment experiences for our players.
Thank you for your continued support. “
A summary of Concord
Released at the end of August 2024, Concord was shut down just two weeks later, on Friday, September 6, following a quiet launch and lukewarm reception from players. With sales below 30,000 copies and a minimal player base for its genre, the title struggled significantly.
Ultimately, Concord was deemed unsuccessful, leading PlayStation to unpublish the game and issue full refunds to those who had purchased it.
Nyx, General Manager and Editor at Vertex Mode, is a seasoned 3D Artist in gaming and film, sharing insights on Digital Art and its creators.
