Sony Is Shutting Down Firewalk Studios, the Team Behind Concord, and Mobile Developer Neon Koi

Unshockingly, Sony Interactive Entertainment has announced the shutdown of Firewalk Studios, the developer of its ill-fated multiplayer shooter Concord, and the mobile-oriented Neon Koi studio. This decision comes just months after Concord’s August 2024 release, a game initially anticipated as a cornerstone of PlayStation’s foray into the live-service market.

Firewalk is signing off one last time.

Firewalk began with the idea of bringing the joy of multiplayer to a larger audience. Along the way we assembled an incredible team who were able to:
– Navigate growing a new startup into a team during a global pandemic: Firewalk was…

— Firewalk (@FirewalkStudios) October 29, 2024

For context, Concord was meant to be a massive player for Sony, developed by Firewalk Studios, which Sony acquired in 2023 following a promising initial partnership in 2021. The game, touted for its potential to bring a “Star Wars-like” impact to PlayStation, launched with high hopes. However, it quickly faced a dismal reception, reportedly selling under 30,000 copies and peaking at only 697 concurrent players on its launch day. In an industry first for Sony, the company removed Concord from servers and issued refunds just two weeks post-launch, signalling the project’s costly failure.

The abrupt shutdown reflects Sony’s evolving approach to live service and mobile gaming, highlighting the risks and learnings within the fiercely competitive industry.

Sony Shuts Down Firewalk Studios

As mentioned above, Sony partnered with Firewalk Studios in 2021 and acquired the studio two years later, suggesting a deep belief in Firewalk’s potential to deliver a AAA title. It was notable since Sony seldom acquires studios without proven releases. Sony tased Firewalk to create Concord, a live-service, multiplayer game that reportedly cost $400 million over eight years. Sony hoped it would captivate audiences with “Star Wars-like” success, which unfortunately did not materialize.

In an email, Hermen Hulst, CEO of Sony’s Studio Business Group, confirmed that Concord’s challenges forced a reevaluation of its live-service goals. After several weeks of exploring potential avenues for Concord, Sony closed Firewalk Studios entirely.

To summarise, the statement reads that Sony has determined the best path forward is to sunset the game and close the studio permanently. The company will take the lessons learned from Concord and continue to advance its live service capabilities to deliver future growth in this area. They also will try their best to employ layoff employees and thank them for their service.

Sony Shuts Down Neon Koi

Besides Firewalk Studios, Sony decided to shutter Neon Koi, a studio focused on mobile game development and part of Sony’s growing interest in mobile gaming. Acquired in 2022, Neon Koi was a foundational part of Sony’s strategic expansion into the mobile market.

Sony has closed Neon Koi and Firewalk Studios.

Concord has permanently shut down.

Full internal email from Herman Hulst https://t.co/b9Iwq76pku pic.twitter.com/7ph5W5LPO7

— Wario64 (@Wario64) October 29, 2024

Despite the early-stage investment in mobile gaming, Sony concluded that Neon Koi’s in-development mobile action game would not align closely enough with PlayStation’s brand or meet global reach expectations.

While mobile remains a “priority growth” area, Hulst emphasized Sony’s need to focus on titles that align with the PlayStation legacy, indicating that the company may take a more conservative approach to mobile projects.

Sony’s Future Strategies and Plans

The closure of Firewalk Studios and Concord’s quick demise highlight the challenges of venturing into the highly competitive live-service and PvP shooter markets. Hulst noted that Concord was a learning experience and pledged that future live-service endeavours from PlayStation Studios would incorporate the lessons from this project.

As Sony continues to develop other live-service titles, Hulst affirmed the importance of balancing creative experimentation with sustainable financial goals, particularly in a challenging economic environment.

Moreover, while Sony remains committed to mobile gaming, the Neon Koi shutdown underscores the company’s intention to pivot towards projects aligned with PlayStation’s core strengths. Moving forward, the Studio Business Group will refocus on titles that promise more player reach and brand consistency.

Closing Notes

While the closures signal a shift, Sony remains focused on expanding its live-service portfolio and exploring mobile gaming—albeit with a refined approach. Hulst expressed his confidence in the Studio Business Group’s resilience and ability to deliver new entertainment experiences.

The industry as a whole has taken note. With increasing scrutiny on live-service titles and players’ expectations, Concord’s challenges serve as a cautionary tale for other studios exploring similar models. As companies attempt to secure financial stability, analysts predict that both players and investors will see more companies following Sony’s route of evaluating riskier projects.

For more gaming updates and news, follow our Instagram page for the latest announcements from the gaming community.