*Below is an internal email from Hermen Hulst, CEO, Studio Business Group, Sony Interactive Entertainment that was distributed today to SIE employees.
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My dear team,
Today, I want to share with you some important updates from Sony Interactive Entertainment’s Studio Business Group.
We continually evaluate our gaming portfolio and the status of our projects to ensure we are meeting near- and long-term business priorities. As part of our ongoing efforts to strengthen the SIE Studio business, we had to make a difficult decision regarding two of our studios – Neon Koi and Firewalk Studios.
Expanding beyond PlayStation consoles and crafting engaging online experiences alongside single-player games are key areas of focus for us as we grow our revenue streams. However, we must be strategic in bringing our games to new platforms and recognize when our games fall short of meeting players’ expectations.
Although mobile continues to be a priority growth area for Studio Business, we are still at a very early stage in our mobile efforts. To succeed in this space, we need to focus on titles that are consistent with PlayStation Studios’ history and have the potential to reach more players globally.
With this refocused approach, Neon Koi would shut down, and its mobile action game would not advance. I want to express my gratitude to everyone at Neon Koi for their hard work and endless passion for innovation.
Regarding Firewalk, as announced in early September (an important update on Concord), some aspects of Concord were exceptional, but others didn’t reach enough players, and as a result we took the game offline. We’ve spent a lot of time over the past few months exploring all of our options.
After much consideration, we have determined that the best path forward is to permanently shut down the game and close the studio. I would like to thank all Firewalk members for their skill, creative spirit and dedication.
The PvP first-person shooter genre is an ever-evolving competitive space, and unfortunately, we didn’t achieve our goals with this title. We will take the lessons learned from Concord and continue to develop our live service capabilities for future growth in this area.
I know none of this is easy to hear, especially with colleagues and friends who are leaving SIE. Both decisions have been given serious thought and, ultimately, we feel they are the right decision to strengthen the organization. Neon Koi and Firewalk have been home to many talented individuals, and we will work to find a place for some of those impacted within our global studio community wherever possible.
I am a strong believer in the benefits of embracing creative experimentation and developing new intellectual property. However, growth through sustainable financial resources, especially in a challenging economic environment, is crucial.
Although today is a difficult day, there is a lot to look forward to in the coming months from Studio Business Group and our teams. I remain confident that we are building a resilient organization capable of creating memorable entertainment experiences for our players.
Thank you for your continued support.
