Sony Shifts Strategy: Closure of Neon Koi and Firewalk Studios Amid Game Development Reevaluation

Recent developments in the gaming industry have led to the closure of two PlayStation studios, Neon Koi and Firewalk Studios, which was confirmed through an internal communication from Sony's leadership. This decision highlights a significant shift in the company's strategy and reflects a reassessment of its game development focus. The official message indicated that Sony is evaluating its game offerings and project status to align with both immediate and long-term business goals. 

As part of this restructuring, Neon Koi was engaged in the creation of an undisclosed mobile action game, which has now been officially put on hold. Meanwhile, Firewalk Studios experienced closure following the unfavorable reception of its inaugural title, Concord, which launched in August after eight years of development. The game faced criticism and was pulled just two weeks post-release, leading to refunds for players who had purchased it. 

In a previous update on the PlayStation blog, a game director hinted at the studio exploring new avenues to connect with players, possibly implying a future revival of their projects. However, the recent communication made it clear that they've chosen to permanently discontinue the game and close the studio altogether after thorough consideration. The message also noted that the company plans to apply insights gained from Concord as it continues to enhance its live service initiatives, suggesting more projects in this domain may be forthcoming. 

Additionally, Firewalk Studios expressed their farewells on social media, acknowledging their team's exceptional skills and contributions. Although there hasn't been an official count of those impacted by these closures, a report indicated that around 210 employees are set to lose their jobs between the two studios.