Firewalk Studios is shutting down, PlayStation co-CEO, Hermen Hulst, announced in a press release on Tuesday. The team was responsible for Concord, the company’s sci-fi hero shooter that bombed so badly it was taken offline just weeks after its launch earlier this year. The news comes less than two years after the PlayStation 5 maker first acquired Firewalk Studios as part of its ambitious plans for live service gaming.
“Certain aspects of Concord were exceptional, but others did not land with enough players, and as a result we took the game offline,” Hulst said in the press release. “We have spent considerable time these past few months exploring all our options. After much thought, we have determined the best path forward is to permanently sunset the game and close the studio. I want to thank all of Firewalk for their craftsmanship, creative spirit and dedication.”
Firewalk Studios was formed in 2018 as a few ex-Bungie developers working on a new multiplayer shooter under the umbrella of the gaming studio startup Probably Monsters, formed by ex-Bungie CEO Harold Ryan. Concord was in development for years and picked up by Sony early on as a promising prospect for its portfolio of planned live service games.
The initial development deal for the game was just over $200 million, according to two sources familiar with the agreement but who were not authorized to speak publicly about it. But Kotaku understands that amount was not enough to cover the game’s entire development and did not include the purchase of Concord IP rights or Firewalk Studios itself, which Sony acquired only last year.
Concord, a mix of Destiny 2-style PvP shooting and Overwatch 2‘s hero roster, struggled out of the gate following its full reveal at the PlayStation Showcase this past May. Initial trailers received overwhelmingly negative reactions from prospective players, and open betas over the summer didn’t do much to change those perceptions. The final game reviewed okay, but critics by and large felt there was not enough to help Concord standout in an already crowded field of other established multiplayer shooters that were mostly free-to-play.
With some analysts estimating the game only sold around 25,000 copies in its first week, Concord was later taken offline less than a month after it launched. Kotaku previously reported that game director Ryan Ellis had internally stepped down from his management role on the game while its future was assessed by Sony leadership. The rest of the team, meanwhile, was left in limbo to wonder if Firewalk might be put to work on other Sony projects or shut down entirely.
Hulst also announced today that Neon Koi, which was also acquired by Sony in the last few years, would be closing as well, and the multiplayer mobile shooter it was working on would be canceled.
Here is the full statement Sony:
Dear Team,
Today, I want to share some important updates from Sony Interactive Entertainment’s Studio Business Group.
We consistently evaluate our games portfolio and 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 relating to two of our studios – Neon Koi and Firewalk Studios.
Expanding beyond PlayStation devices and crafting engaging online experiences alongside our single-player games are key focal areas for us as we evolve our revenue streams. We need to be strategic, though, in bringing our games to new platforms and recognize when our games fall short of meeting player expectations.
While mobile remains a priority growth area for the Studio Business, we are in the very early stage of our mobile efforts. To achieve success in this area we need to concentrate on titles that are in-line 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 be moving forward. I want to express my gratitude to everyone at Neon Koi for their hard work and endless passion to innovate.
Regarding Firewalk, as announced in early September (An Important Update on Concord), certain aspects of Concord were exceptional, but others did not land with enough players, and as a result we took the game offline. We have spent considerable time these past few months exploring all our options.
After much thought, we have determined the best path forward is to permanently sunset the game and close the studio. I want to thank all of Firewalk for their craftsmanship, creative spirit and dedication.
The PvP first person shooter genre is a competitive space that’s continuously evolving, and unfortunately, we did not hit our targets 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 news to hear, particularly with colleagues and friends departing SIE. Both decisions were given serious thought, 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 find placement for some of those impacted within our global community of studios where possible.
I am a big believer in the benefits of embracing creative experimentation and developing new IP. However, growing through sustainable financials, especially in a challenged economic environment is critical.
While today is a difficult day, there is much to look forward to in the months ahead from the Studio Business Group and our teams. I remain confident that we are building a resilient and capable organization driven by creating unforgettable entertainment experiences for our players.
Thank you for your continued support.
