Sony Interactive Entertainment Closes Firewalk Studios and Neon Koi, With German Site Also Affected

Firewalk Studios and Neon Koi are being closed by Sony Interactive Entertainment. Firewalk is the studio behind Concord. Neon Koi was working on a mobile action game.

Hermen Hulst, CEO, Studio Business Group, Sony Interactive Entertainment, has announced the closure of two studios: Neon Koi and Firewalk Studios. "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 said. As a result, Neon Koi aka Savage Game Studios, a studio with two offices in Helsinki and Berlin, will be closed. Savage Game Studios was founded in 2021 and merged with Sony Interactive Entertainment Germany on 16 January 2024. The studio was working on a mobile action game.

Firewalk Studios was founded in 2018, and their multiplayer hero shooter Concord went into full production in 2022. The game was released at the end of August 2024 and flopped, leading Sony Interactive Entertainment to take the game offline. The game will not return.  The initial development contract for the game was just over $200 million, according to two sources familiar with the matter (Kotaku). "After much thought, we have determined the best path forward is to permanently sunset the game and close the studio," said Hulst. "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. We will take the lessons learned from Concord and continue to advance our live service capabilities to deliver future growth in this area."

The email that Hermen Hulst sent to all SIE staff goes on to say: "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."

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