Sony shuts Neon Koi and Firewalk Studios

Sony is shuttering Neon Koi and Firewalk Studios.

In an update to Sony employees, Hermen Hulst, CEO, Studio Business Group, Sony Interactive Entertainment, said that after “evaluat[ing] our games portfolio and status of our projects to ensure we are meeting near and long-term business priorities,” it was making the “difficult decision” to close Neon Koi and Firewalk Studios.

In the former’s case, Hulst said that whilst “mobile remains a priority growth area for the studio business”, the company needed “to concentrate on titles that are in-line with PlayStation Studios’ pedigree and have the potential to reach more players globally.”

For Firewalk, Hulst said that Sony had “spent considerable time these past few months exploring all our options,” it has “determined the best path forward is to permanently sunset the game and close the studio.”

It’s unclear how many people will be affected by the closures, but Firewalk says it employs 51-200 people on LinkedIn, and Neon Koi, 11-50.

“I know none of this is easy news to hear, particularly with colleagues and friends departing SIE,” Hulst added. “Both decisions were given serious thought, and ultimately, we feel they are the right ones to strengthen the organisation.

“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.

“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,” Hulst concluded.

“I remain confident that we are building a resilient and capable organisation driven by creating unforgettable entertainment experiences for our players.”

Following Concord’s shut down, GamesIndustry.biz spoke to experts about the many factors behind the decision and how other live service games can avoid a similar fate.