In a significant update from Sony Interactive Entertainment (SIE), Hermen Hulst, the CEO of the Studio Business Group, communicated critical changes affecting two of its studios, Neon Koi and Firewalk Studios. This announcement highlights SIE’s ongoing evaluation of its game portfolio and project statuses to align with both immediate and long-term business goals.

SIE is actively focused on expanding beyond traditional PlayStation devices by creating immersive online experiences, alongside its renowned single-player titles. This strategic pivot aims to diversify revenue streams while ensuring that new games resonate with player expectations.

As part of this re-evaluation, SIE has decided to close Neon Koi, a studio known for its mobile action game development. Despite mobile gaming being a priority growth area for SIE, the company acknowledged that its mobile initiatives are still in their infancy. Moving forward, SIE intends to concentrate on mobile titles that align with PlayStation Studios’ established reputation and have the potential to engage a broader global audience.

Hulst expressed his gratitude for the hard work and dedication of the Neon Koi team, emphasizing their innovative spirit. The decision to close the studio was not made lightly, reflecting SIE’s commitment to ensuring that its projects meet the high standards expected by players.

In addition to Neon Koi, SIE also announced the permanent closure of Firewalk Studios. This decision follows the early September announcement regarding the game Concord, which, despite having exceptional elements, ultimately did not engage enough players to justify its continued development. After extensive deliberation, SIE concluded that the best course of action would be to sunset the game and close the studio.

The competitive nature of the PvP first-person shooter genre was cited as a significant challenge, with Firewalk unable to meet its performance targets for Concord. However, SIE plans to leverage the lessons learned from this experience to enhance its live service capabilities and drive future growth in this sector.

Hulst acknowledged the emotional impact of these changes on employees, particularly those who will be departing the company. He reassured staff that both decisions were made after careful consideration and were deemed essential for strengthening the organization as a whole.

Recognizing the talent within Neon Koi and Firewalk, SIE is committed to supporting affected employees by exploring opportunities for placement within its global network of studios wherever feasible. Hulst emphasized the importance of retaining skilled individuals and fostering their growth within the company.

As SIE navigates this transitional period, the focus will remain on enhancing the quality and reach of its gaming offerings. The company is poised to adapt to the evolving gaming landscape, ensuring that its projects not only meet the expectations of existing players but also attract new audiences.

This update from SIE underscores the dynamic nature of the gaming industry, where strategic decisions are crucial for long-term success. As the company continues to refine its approach, it aims to solidify its position as a leader in gaming innovation and player engagement.