In a shocking move, Sony Interactive Entertainment has decided to not only halt the ongoing development of the multiplayer hero shooter game Concord but also terminate its partnership with the game’s developing firm, Firewalk Studios. Such news undoubtedly sends shivers through the industry, with the $200 million spent on the project now a large, enticing figure etched in red on Sony’s financial records. Still, insiders suggest that this figure is merely the tip of the iceberg, with total losses potentially being much higher.
Among its backers, Concord seemed to have elements of promise. Sony’s Studio Business Group CEO, Hermen Hulst, pointed out in a recent statement that certain facets of the game exhibited remarkable flair. However, it appeared that the game could not create a significant enough impact to sway the scales in its favor.
“The PvP first-person shooter segment is a fiercely contested territory that tirelessly evolves,” Hulst said. It was not impressive enough to attract sufficient attention to meet its objectives in such a demanding, overpopulated space.
To be honest, this is rather subtly put. Concord debuted without any noticeable excitement and was pulled out of the market within just three weeks—a tragic comedown sped up by Sony. The gaming sphere met the sudden removal of the game from stores with shock, and reimbursements were provided to the early buyers.
Reflecting on this chapter of Sony’s history, Hulst said, “The wisdom garnered from the Concord experience will fuel our live service capabilities, facilitating future expansion in this sector.”
The hard pill to swallow here is knowing team members and friends will be departing from Sony Interactive Entertainment due to these recent developments. But the boundless world of gaming holds many opportunities up its sleeve.
The initial investment in Concord was $200 million, specifically. However, industry insiders speculate this amount doesn’t include the complete development costs or the expenses Sony shouldered to acquire Firewalk Studios and the intellectual property rights for Concord. The exact financial damage dealt by the Concord venture is something Sony is likely to remain tight-lipped about.
Sony’s radical decisions weren’t limited to Concord and Firewalk. Neon Koi, another game studio concurrently working on a mobile action game, received an equivalent shutdown.
“These closures were not hastily resolved,” said Hulst. “Rather, they are strategic decisions aimed at consolidating our entity. Both Neon Koi and Firewalk housed numerous talented professionals, and we hope to reposition as many of them within our network of studios spread across the globe where we can.”
These back-to-back closures may indeed strengthen Sony’s position, but they also highlight the ruthless competition and difficulties within the gaming industry. As for the shuttered studios, their vast number of talented workers will not be soon forgotten.
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