Sony Interactive Entertainment announced the closure of Firewalk Studios and Neon Koi just yesterday, October 29, 2024. Read on to learn more about Sony’s decision and Firewalk Studios’ message to the community.
Sony Closes Firewalk studios, Cancels Concord, and Scraps Neon Koi’s Mobile Game
Firewalk Studios Walks No More, as Sony Continues to Make Efforts in Live-Service Games
Just two weeks ago, gamers were speculating about Concord's return as a free-to-play game. However, these speculations now seem unfounded, as Sony has officially shut down Firewalk Studios, the developer behind the ill-fated sci-fi shooter Concord, nearly two years after acquiring the studio.
Sony Interactive Entertainment CEO Hermen Hulst said in an email distributed to SIE employees that the decision came after evaluating "our games portfolio and status of our projects to ensure we are meeting near and long-term business priorities." He further elaborated that "considerable time" was spent exploring options for Firewalk, but ultimately, "the best path forward is to permanently sunset [Concord] and close the studio."
Hulst praised the developers for their commitment and creativity but acknowledged that "The PvP first person shooter genre is a competitive space that’s continuously evolving, and unfortunately, we did not hit our targets with this title." According to Hulst, Sony does not intend on moving forward with Concord, but he did mention that they "will take the lessons learned from Concord and continue to advance our live service capabilities to deliver future growth in this area."
Firewalk released a statement on Twitter (X) hours later, saying, "We took some risks along the way—marrying aspects of card battlers and fighting games with first-person shooters—and although some of these and other aspects of the IP didn’t land as we hoped, the idea of putting new things into the world is critical to pushing the medium forward. "
Sony acquired Firewalk in 2023 to develop live-service games—a competitive genre that demands steady player engagement and is often seen as high risk, high reward due to market saturation. Despite an investment estimated at $400 million, Concord reportedly sold only 25,000 copies before Sony canceled the project on September 6th of this year.
According to the studio, Firewalk began in 2018 "with the idea of bringing the joy of multiplayer to a larger audience." At the time, the team was small and only entered full production in 2022. Despite the struggles, they noted that they were able achieve so much, even build a "new, customized next-generation FPS engine in Unreal 4 -> 5."
"The talent at Firewalk and the level of individual craft is truly world-class, and teams within Sony Interactive Entertainment and across the industry will be fortunate to work with them," the studio continued in their tweet. "Please reach out to Recruiting at PlayStation for inquiries, and thank you to all the very many teams, partners and fans who supported us along the way. See you in the Tempest."
Sony Cancels Neon Koi’s Mobile Game, Shuts Down Studio
Firewalk’s closure isn’t isolated, however, as Sony also announced the shutdown of Neon Koi, a German-Finnish mobile-focused studio initially branded as Savage Game Studios before its rebranding in 2023. When Sony acquired Neon Koi in 2022, the team was given a special role within the newly minted PlayStation Studios Mobile Division, tasked with developing "on-the-go experiences based on new and existing PlayStation IP" and expand Sony’s presence in mobile gaming. Neon Koi was reportedly in the early stages of developing a "mobile action game," but it's unlikely we'll see the game now that Sony has closed the studio.
It appears, however, that the studio’s development journey was far from smooth, seeing as they lost several key executives early on, including Michail Katkoff, the managing director of Savage Game Studios at the time of Sony’s acquisition.
Ultimately, Sony chose to end the project, explaining that "While mobile remains a priority growth area for the Studio Business, we are in the very early stage of our mobile efforts. To achieve success in this area, we need to concentrate on titles that are in-line with PlayStation Studios’ pedigree and have the potential to reach more players globally."
Hulst added that he is "a big believer in the benefits of embracing creative experimentation and developing new IP. However, growing through sustainable financials, especially in a challenged economic environment is critical."
Sony Says “There is Much to Look Forward to” Despite Studio Closures
In recent years, layoffs in the gaming industry have unfortunately become a regular occurrence, impacting studios big and small. This year alone saw more than 13,000 developers lose their jobs—and 2024 isn’t even over yet. Now, Firewalk Studios and Neon Koi are the latest additions to this grim statistic.
Sony’s Hulst, however, remains confident about PlayStation Studios’ growth potential despite the setbacks. "While today is a difficult day," he said, "there is much to look forward to in the months ahead from the Studio Business Group and our teams." Only time will tell if Sony can learn from the past and deliver on these future promises.
Source:
SIE | An Update from PlayStation Studios
Firewalk Studios | Firewalk is signing off one last time.
The Official PlayStation Blog | An important update on Concord
Forbes | New Report Says Sony’s ‘Concord’ Cost $400 Million To Make
IGN | Concord Is Estimated to Have Sold Only 25,000 Units. Here’s Why Analysts Think It Failed
The Official PlayStation Blog | Welcoming Savage Game Studios + Expanding Our Community
