An update from PlayStation Studios

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

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Dear team,

Today I'd like to share some important updates from Sony Interactive Entertainment's Studio Business Group.

We continually evaluate our games portfolio and the status of our projects to ensure we are meeting short 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 developing engaging online experiences alongside our single-player games are important areas of focus for us as we continue to develop our revenue streams. However, we must be strategic about bringing our games to new platforms and recognize when our games are not meeting player expectations.

While mobile continues to be a priority growth area for the studio business, we are still in the very early stages of our mobile efforts. To be successful in this area, we need to focus on titles that fit PlayStation Studios' pedigree and have the potential to reach more players worldwide.

With this refocused approach, Neon Koi will be shutting down and its mobile action game will not be further developed. I would like to express my gratitude to everyone at Neon Koi for their hard work and endless passion for innovation.

Regarding Firewalk, as announced in early September (An Important Update on Concord), certain aspects of Concord were exceptional, but others did not resonate with enough players, which is why we took the game offline. We've spent a lot of time over the last few months exploring all of our options.

After much consideration, we have come to the conclusion that the best path forward is to permanently discontinue 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 environment that is constantly evolving, and unfortunately we failed to achieve our goals with this title. We will learn lessons from Concord and continue to expand our live service capabilities to achieve future growth in this area.

I know this isn't easy news, especially with colleagues and friends leaving YOU. Both decisions were carefully considered and ultimately we believe they are the right ones to strengthen the organization. Neon Koi and Firewalk have been home to many talented people, and we will work to find accommodation for some of those affected within our global studio community where possible.

I strongly believe in the benefits of creative experimentation and the development of new intellectual properties. However, growth through sustainable financial assets is crucial, especially in a difficult economic environment.

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

Thank you for your continued support.