Sony Interactive Entertainment Shuts Down Firewalk Studios & Neon Koi

Following the rough launch of Concord and its subsequent removal from service after two weeks, many were wondering what would be next for Firewalk Studios’ first title. Today, we officially got an answer. Sony Interactive Entertainment shared an update from PlayStation Studios where CEO Herman Hulst announced they are closing Firewalk Studios and the mobile studio Neon Koi.

“We consistently evaluate our games portfolio and status of our projects to ensure we are meeting near and long-term business priorities,” Hulst said. “As part of our ongoing efforts to strengthen SIE’s Studio Business, we have had to make a difficult decision relating to two of our studios – Neon Koi and Firewalk Studios.”

Firewalk Studios was created back in 2018. In 2021, they announced a publishing partnership with PlayStation. In 2023, PlayStation acquired Firewalk Studios and they officially announced and revealed Concord. Gameplay was officially revealed earlier this year followed by beta and then the game’s release.

“Regarding Firewalk, as announced in early September  (An Important Update on Concord), certain aspects of Concord were exceptional, but others did not land with enough players, and as result we took the game offline,” Hulst explained. “We have spent considerable time these past few months exploring all our options. After much thought, we have determined the best path forward is to permanently sunset the game and close the studio.   I want to thank all of Firewalk for their craftsmanship, creative spirit and dedication.”

“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,” Hulst said. “We will take the lessons learned from Concord and continue to advance our live service capabilities to deliver future growth in this area.”

Neon Koi is a mobile developer from Germany that was working on a mobile action game.

Explaining the closure of Neon Koi, Hulst explained 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.

With this re-focused approach, Neon Koi will close, and its mobile action game will not be moving forward. I want to express my gratitude to everyone at Neon Koi for their hard work and endless passion to innovate.”

Bloomberg reports that about 210 jobs were affected between the two studios.

Herman Hulst ended the internal email with:

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

I am 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.

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

Thank you for your continued support.”

Paul David Nuñez: I love to escape my reality with books, music, television, movies, and games. If I'm not doing anything important, I'm probably doing one of these things. P.S. The Matrix Has You
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