*The following is an internal email that Mr. Hermen Hulst, CEO of Sony Interactive Entertainment Studios Business Group, distributed to SIE employees today.
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Dear team,
Today we would like to share some important updates from Sony Interactive Entertainment’s Studio Business Group.
We consistently assess the status of our game portfolio and projects to ensure we’re meeting short- and long-term business priorities. As part of our continued efforts to strengthen SIE’s studio business, we have had to make difficult decisions regarding two of our studios: Neon Koui and Firewalk Studios.
Expanding beyond PlayStation devices and creating engaging online experiences alongside single-player games are key areas of focus as we evolve our revenue streams. However, you need to be strategic when bringing your game to a new platform, and be aware when your game isn’t meeting player expectations.
While mobile remains a priority growth area for our studio business, we are in the very early stages of our mobile journey. To be successful in this space, we need to focus on titles that have the potential to reach more players around the world, in line with the PlayStation Studios lineage.
With this refocusing of the approach, Neon Koi will end and its mobile action game will not move forward. We would like to thank everyone at Neon Koi for their hard work and relentless passion for innovation.
Regarding Firewalk, as announced in early September (important update for Concord), while certain aspects of Concord were exceptional, others did not attract enough players, resulting in the game being taken offline. did. We have spent a significant amount of time over the past few months considering all options.
After much consideration, we have decided that the best path forward is to permanently end the game and close the studio. I would like to thank everyone at Firewalk for their craftsmanship, creative spirit, and dedication.
The PvP first-person shooter genre is a continually evolving competitive arena, but unfortunately this title missed the mark. We will continue to leverage the lessons we learned from Concord and evolve our live service capabilities to enable future growth in this space.
I know that none of this is easy news to hear, especially for my colleagues and friends who are retiring from SIE. Both decisions were seriously considered and ultimately we feel they are the right decisions to strengthen our organization. Neon Koui and Firewalk are home to a lot of talent, and we strive to place some of our influences in the studio’s global community whenever possible.
I’m a strong believer in the benefits of embracing creative experimentation and developing new IP. However, especially in a difficult economic environment, it is important to grow through sustainable finance.
Although today is a difficult day, there is much that Studio Business Group and our team are looking forward to in the coming months. I believe we are building a resilient and capable organization, driven by creating unforgettable entertainment experiences for our players.
Thank you for your continued support.
