Tech

Sony is Shutting Down Another Game Studio

Published

3 weeks ago

October 29, 2024

Admin

Key Takeaways

Sony is shutting down its mobile developer Neon Koi, citing a shift in focus to produce more successful games.
Multiple gaming studios, including Firewalk Studios, have faced layoffs and shutdowns in recent months, causing concern.
Analysts predict industry improvements in 2025, but uncertainty remains as companies restructure and reduce workforces.

Adding to the almost never-ending string of layoffs and shutdowns that have plagued the video game industry for over a year, Sony has announced that it is shuttering mobile developer Neon Koi. Sony first acquired Neon Koi in 2022, then under the name of Savage Game Studios, but the Japanese gaming giant has now made the decision to close down the developer.

Both indie and AAA studios have announced major shutdowns in recent months, with big names like Sony, Embracer Group, Bungie, and Microsoft laying off staff by the thousands. Analysts have pointed to bloated hiring practices during the COVID-19 pandemic as potential sources of excessive workforces, which are now unfortunately being cut back to account for changes to economic and business climates. Sony has already had a number of layoff announcements, and the company has once again revealed an unexpected shutdown.

Concord Developer is Shutting Down

Sony announces that it’s closing Firewalk Studios, the developer behind the unsuccessful live-service hero shooter Concord.

Announced via an internal email from Sony Studio Business Group CEO Herman Hulst, the entire Neon Koi studio has been shut down, and its in-development mobile game has been canceled. Neon Koi was confirmed to be working on a mobile action game, though details of the title were never revealed. In the announcement from Hulst, the CEO explained that PlayStation is still “in the very early stage” of its mobile developments, and the company wants to re-focus on producing “titles that are in-line with PlayStation Studios’ pedigree and have the potential to reach more players globally.” Hulst noted that mobile remains a “priority growth” area for Sony, and the company will work to relocate some of the impacted staff under other studios within the Sony umbrella. Firewalk Studios, the developer of the now canceled game Concord, has also been terminated alongside Neon Koi.

Sony Shuts Down Mobile Developer Neon Koi

The news of Neon Koi’s shutdown comes amid tumultuous times for both Sony and the video game industry as a whole. Multiple developers have seen their doors shuttered and highly-anticipated game releases canceled abruptly. In spite of the studio never releasing a title under Sony ownership, many have voiced their sympathies for the team members affected by the closure of Neon Koi. Audiences and workers alike remain skeptical of the future of the industry, with unfortunate announcements from Sony and others compounding uncertainty around uncompleted projects.

While analysts and experts have predicted improvements to the gaming industry in 2025, others remain worried that it may still be some time before companies stabilize their work forces under restructuring programs. As Sony bids farewell to Neon Koi, it remains to be seen if the company will revisit its mobile gaming efforts anytime soon.