In a shocking development that underscores the volatile nature of the gaming industry, Sony Interactive Entertainment has permanently shut down Concord and closed Firewalk Studios, barely two weeks after the competitive team shooter’s launch. The closure, announced on October 30, 2024, will result in 172 employees losing their jobs, marking another significant setback in an industry already grappling with widespread layoffs.
Swift Decline and Studio Closure
The sudden closure comes after Concord’s disappointing market performance, which led to its servers being deactivated just fourteen days post-launch. Ryan Ellis, the game’s director, had previously stepped back into a supportive role following the game’s struggles, signaling early troubles for the $40 competitive shooter.
After much thought, we have determined the best path forward is to permanently sunset the game and close the studio,” stated Hermen Hulst, head of Sony Interactive Entertainment’s Studio Business Group. “I want to thank all of Firewalk for their craftsmanship, creative spirit and dedication.”
Market Challenges and Industry Trends
Industry analysts point to several factors contributing to Concord’s failure. The game’s extended development period meant it entered a market already saturated with established team shooters. Moreover, the $40 price point proved challenging in a landscape dominated by free-to-play titles utilizing battle pass and seasonal revenue models.
The closure is particularly notable as Firewalk Studios had been acquired by Sony Interactive Entertainment just last spring, highlighting the rapid pace at which fortunes can change in the gaming industry.
Broader Industry Implications
This shutdown joins a growing list of industry contractions in 2024:
- Netflix’s unexpected closure of its AAA studio before project announcement
- Microsoft’s shutdown of three Zenimax family studios
- Numerous other layoffs and consolidations across the sector
Industry Consolidation Concerns
As major players continue to consolidate their hold on the gaming industry, experts worry about diminishing tolerance for experimentation and tighter profit margins. This trend could lead to more sudden studio closures and project cancellations in the future.
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