In a significant move within the gaming industry, Sony has announced the closure of Firewalk Studios, the team behind the troubled PlayStation game Concord. This decision comes just weeks after the game was taken offline following a lackluster launch. Additionally, Sony is shutting down Neon Koi, a mobile game studio it acquired in 2022, as part of a broader strategy to refocus its development efforts.
Hermen Hulst, the CEO of the PlayStation studio business group, communicated the news to staff, expressing gratitude for the hard work and creativity of the Firewalk team. “We have spent considerable time these past few months exploring all our options,” Hulst stated, emphasizing the thoughtful deliberation that led to this outcome. Ultimately, the decision to permanently close Firewalk and sunset Concord was made after recognizing that the game did not meet Sony’s expectations.
Concord launched on August 23, 2024, available on both PlayStation 5 and PC. However, it quickly became clear that the game was not resonating with players. Just two weeks later, on September 6, Sony pulled the title offline due to disappointing sales figures. Reports indicated that Concord sold fewer than 25,000 copies, with its peak concurrent player count on Steam hitting a mere 697—an especially disheartening number when compared to other recent game launches.
In light of these figures, the decision to close Firewalk Studios reflects Sony’s commitment to maintaining high standards for its gaming portfolio. Hulst noted that the company aims to learn from the shortcomings of Concord, stating, “We will take the lessons learned from Concord and continue to advance our live service capabilities to deliver future growth in this area.” This sentiment underscores the ongoing challenges that game developers face in an ever-evolving market.
The closure of Firewalk Studios is not the only fallout from this situation. Sony is also shutting down Neon Koi, which had been developing a triple-A mobile live service action game. Despite its potential, the studio’s future project will not be moving forward. Hulst reiterated that mobile gaming remains a priority for Sony, even as the decision to close Neon Koi was made to streamline the organization’s focus.
The impact of these closures extends beyond just the games themselves. Some developers affected by the shutdowns may find opportunities within other Sony studios, but many others will face the harsh reality of job loss. The gaming industry has seen thousands of layoffs in recent years, reflecting broader economic pressures and shifting market dynamics.
As Sony navigates this challenging landscape, it is clear that the company is committed to refining its approach to game development and live service offerings. The closure of Firewalk and Neon Koi serves as a reminder of the risks involved in game creation, where even substantial investments can lead to unexpected outcomes.
Moving forward, Sony will likely leverage the insights gained from these experiences to inform its future projects, aiming to strengthen its competitive position in the gaming market. The landscape remains uncertain, but the lessons learned from Concord and its associated studios may ultimately contribute to a more resilient and successful strategy for Sony in the years to come.
