It has been confirmed that following the significant failure of Concord, Sony Interactive Entertainment has decided to close Firewalk studio, resulting in 172 employees losing their jobs. This decision was initially reported by Bloomberg and its investigative journalist Jason Schreier and later announced publicly by Hermen Hulst, co-CEO of Sony Interactive Entertainment. “We regularly assess our games portfolio and the progress of our projects to ensure alignment with both short-term and long-term commercial priorities,” he stated. “As part of our continuous efforts to enhance SIE’s studio activities, we have had to make a challenging decision regarding two of our studios—Neon Koi and Firewalk Studios.” He further noted that multiplayer online games remain crucial for revenue generation but acknowledged the need to adjust and adapt strategies to meet player demands. It is important to mention that Concord was removed from shelves just fifteen days after its release, with an unsuccessful attempt to revive it on Steam.
The announcement of Firewalk Studios’ closure is also accompanied by layoffs at Neon Koi, formerly known as Savage Game Studios. The company had been commissioned by Sony to develop mobile games but was discontinued before any projects were publicly announced. Sony Interactive Entertainment recognizes that the nature of its console and its audience do not align with snack-like mobile games, making it necessary to halt these efforts now to avoid further financial losses. “While mobile remains a priority growth area for Studio Business, we are only at the very beginning of our efforts in this domain,” Sony stated. “To succeed, we must focus on titles that align with PlayStation Studios’ pedigree and have the potential to reach more players globally.”
