An update from PlayStation Studios

*Below is an internal email from Hermen Hulst, CEO, Studio Business Group, Sony Interactive Entertainment distributed today to SIE employees.

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Dear team,

Today I want to share some important updates from Sony Interactive Entertainment’s Studio Business Group.

We consistently evaluate our game 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 SIE’s Studio Business, we have had to make a difficult decision regarding two of our studios – Neon Koi and Firewalk Studios.

Expanding beyond PlayStation devices and creating engaging online experiences alongside our single-player games are key areas of focus for us as we develop our revenue streams. However, we must be strategic in bringing our games to new platforms and recognize when our games do not meet players’ expectations.

Although mobile remains a priority growth area for Studio Business, we are in the very early stages of our mobile efforts. To be successful in this area, we need to focus on titles that are consistent with PlayStation Studios’ pedigree and have the potential to reach more players globally.

With this re-focused approach, Neon Koi will close and its mobile action game will not move forward. I would like to express my gratitude to everyone at Neon Koi for their hard work and endless passion to innovate.

As for Firewalk, as announced in early September (An important update on Concord), certain aspects of Concord were exceptional, but others didn’t land with enough players, and as a result we took the game offline. We have spent a lot of time over the last few months exploring all of our options.

After much consideration, we have decided that the best way forward is to permanently sunset 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 competitive field that is constantly evolving, and unfortunately we fell short of our goal 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.

I know none of this is easy to hear, especially with colleagues and friends leaving SIE. Both decisions were carefully considered and ultimately we feel they are the right ones to strengthen the organization. Neon Koi and Firewalk were home to many talented individuals and we will work to accommodate some of those affected in our global community of studios where possible.

I’m a big believer in the benefits of embracing creative experimentation and developing new IP. However, it is crucial to grow through sustainable financial economics, especially in a challenged economic environment.

Although today is a difficult day, there is much to look forward to in the coming months from Studio Business Group and our teams. I remain convinced that we are building a robust and capable organization driven by creating unforgettable entertainment experiences for our players.

Thank you for your continued support.