Jakarta, Indonesia Sentinel — Sony Interactive Entertainment (SIE) recently announced the closure of two PlayStation game development studios, Firewalk Studios and Neon Koi, which had been expected to strengthen its game portfolio. This move underscores the intense challenges within the competitive gaming industry.
Firewalk Studios had recently released Concord, a shooter game that faced widespread criticism shortly after launch. Failing to meet targets and expectations, Sony decided to cancel the Concord project just two weeks post-release.
In an official statement, CEO of PlayStation Studios Business Group, Hermen Hulst stated that Sony had spent the past few months evaluating all available options before ultimately deciding to close the studios.
“We spent the last few months exploring various options. After careful consideration, we’ve determined that the best path forward is a permanent closure of both the game and the studio. I want to thank Firewalk for their creativity, passion, and dedication,” said Herman Hulst,.
Firewalk Studios, which had been working under Sony’s umbrella, developed Concord as a first-person PvP shooter with the hopes of breaking into the highly competitive market. While there was initial enthusiasm, Concord struggled to attract the number of players Sony aimed for, facing criticism for a lack of meaningful innovation and struggling to compete with leading titles in the genre.
According to The Verge, Reports on the game’s disappointing performance revealed low sales numbers, with under 25,000 copies sold and a peak of just 697 players on Steam.
In addition to Firewalk Studio, Sony has also shut down Neon Koi, a mobile-focused game development studio, despite its previous statements about prioritizing growth in the mobile gaming sector. “With this re-focused approach, Neon Koi will close, and its mobile action game will not be moving forward,” Hulst said.
Sony acquired Neon Koi, originally known as Savage Game Studios—a German-Finnish game developer—in 2022. The studio had specialized in creating AAA games for mobile devices.
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“The decision to close both studios was made after careful consideration. We believe this is the best path forward to strengthen the company,” Hulst said.
According to a Bloomberg report, the closures of these two studios impact around 210 employees, some of whom may be reassigned to other Sony studios, while others will join thousands of industry workers affected by layoffs in recent years.
Sony’s Live Service Strategy
Sony’s recent experiences underscore the importance of refining its live-service approach—a model that allows continuous updates based on player feedback, keeping gameplay fresh and engaging. Learning from Concord, Sony plans to boost investment in live services to create games better aligned with player expectations and global market trends.
Through these changes, Sony aims to strengthen its ability to offer games that can thrive in the competitive global gaming market. The closures of Firewalk Studios and Neon Koi are part of Sony’s larger strategy to focus on long-term growth goals, while also underscoring the challanges in the gaming industry, where innovation and player engagement remain essential.
(Raidi/Agung)
