Sony Shuts Down Firewalk Studios and Concord Game After Poor Performance

Sony Shuts Down Firewalk Studios and Neon Koi: What it Means for PlayStation

Sony Interactive Entertainment recently announced the closure of Firewalk Studios, the creative team behind the PlayStation game Concord, which faced backlash following its launch. This closure reflects broader challenges within the gaming industry as companies adjust to changing player expectations and economic factors.

The Downfall of Concord

Concord made its debut on August 23rd, available on both PlayStation 5 and PC platforms. However, the game was taken offline only weeks later, on September 6th, due to disappointing sales figures. Industry estimates suggest that Concord failed to reach even 25,000 sales, which is alarmingly low compared to trending titles. For context, the game only achieved a peak of 697 concurrent players on Steam—less than half of the player engagement seen with The Lord of the Rings: Gollum.

Statements from Leadership

Hermen Hulst, CEO of the PlayStation studios business group, expressed his gratitude to Firewalk Studios in a message to staff, thanking them for their "craftsmanship, creative spirit, and dedication." However, he acknowledged that the game did not meet the company's expectations and emphasized the importance of learning from the experience. He stated:

“After much thought, we have determined the best path forward is to permanently sunset the game and close the studio.”

Future Prospects: Live Service Gaming

Despite the setback, Hulst mentioned that Sony will focus on improving its live service capabilities, indicating that they aim to leverage lessons learned from Concord to drive future growth in this sector. "Delivering engaging live service experiences is critical in today's gaming landscape," he added.

Neon Koi: A Mobile Game Studio Closure

In addition to the closure of Firewalk, Neon Koi, a mobile game studio that was acquired by Sony in 2022, will also be shutting its doors. Originally known as Savage Game Studios, Neon Koi was developing an unannounced AAA mobile live-service action game, which will now not move forward.

Hulst emphasized, “Mobile remains a priority growth area,” indicating that Sony is not abandoning this segment entirely but is instead refocusing its efforts. The decision to close Neon Koi was described as a measure to strengthen the organization.

Impact on Developers and the Industry

While some of the developers affected by these closures may have the opportunity to transition into roles within other Sony studios, many will join the ranks of thousands of professionals who have faced layoffs in the gaming industry in recent years. This trend highlights the ongoing challenges and volatility within the market as studios strive to adapt to changing consumer demands.

Conclusion: An Uncertain Future for PlayStation Studios

The closures of Firewalk Studios and Neon Koi underscore the competitive nature of the gaming industry and the difficulties that can arise from launching new titles. As Sony reflects on these challenges, the broader gaming community will be watching closely to see how the company plans to navigate future projects and investment in live service games. This change may offer valuable insights into their strategic direction, shaping the future of PlayStation.