- Sony (NYSE:SONY) announced the closure of Firewalk Studios, just 18 months after acquiring the Bellevue, Washington-based game developer
- After nearly a decade and more than US$400 million in development, the game was pulled after a disastrous performance in its first two weeks
- By late October 2024, Sony’s stock had stabilized and analysts attribute this stabilization to its diversified portfolio and strong performance in other areas
- Sony stock (NYSE:SONY) last traded at US$17.73 per share
In a surprising move, Sony (NYSE:SONY) announced the closure of Firewalk Studios, just 18 months after acquiring the Bellevue, Washington-based game developer. This decision comes in the wake of the underwhelming performance of Firewalk’s live service video game, “Concord,” on the PlayStation 5.
Background on Concord’s performance
“Concord,” a first-person shooter developed by Firewalk Studios, was released in late August 2024. Despite high expectations and a significant marketing push, the game struggled to gain traction among players. Initial reviews praised the game’s strong FPS fundamentals and innovative hero designs, but it failed to stand out in the crowded PvP shooter market.
The game faced several challenges, including technical issues and a lack of distinguishing features compared to other popular titles in the genre. The game took eight years and more than US$400 million to develop, but sold as few as 25,000 copies between Sony’s PlayStation 5 console and PC platforms, with only a few hundred players (at most) online at any given time, making it one of the biggest flops in gaming history.
Within two weeks of its release, Sony decided to pull the plug on “Concord,” citing poor sales and low player engagement.
“After much thought, we have determined the best path forward is to permanently sunset the game and close the studio,” Studio Business Group CEO Hermen Hulst said in a statement on the closure. “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.”
The game’s servers were shut down, and refunds were offered to players who had purchased it.
Sony’s stock performance since September 2024
Since the beginning of September 2024, Sony’s stock has experienced fluctuations, reflecting broader market trends and the company’s internal challenges. In early September, Sony’s stock was trading around $19.10 per share. However, following the announcement of “Concord’s” shutdown and the subsequent closure of Firewalk Studios, the stock saw a slight decline.
By late October 2024, Sony’s stock had stabilized, trading at approximately US$17.85 per share. Analysts attribute this stabilization to Sony’s diversified portfolio and strong performance in other areas, such as its electronics and entertainment divisions. Despite the setback with Firewalk Studios, Sony remains a significant player in the gaming industry, with ongoing projects and future releases expected to bolster its market position.
The final boss
The closure of Firewalk Studios marks a significant moment for Sony Interactive Entertainment as it reassesses its strategy in the competitive gaming market. While “Concord” did not meet expectations, Sony’s commitment to innovation and quality in its gaming portfolio remains strong. Investors and gamers alike will be watching closely to see how Sony navigates these challenges and continues to evolve in the dynamic world of interactive entertainment.
About Sony
Sony Interactive Entertainment is a subsidiary of Sony Corp., one of the most comprehensive entertainment companies in the world, with a portfolio that encompasses electronics, music, motion pictures, mobile, gaming, robotics and financial services.
Sony stock (NYSE:SONY) last traded at US$17.73 per share and though it is up 8.63 per cent over the past three months, it has fallen 6.38 per cent since the year began.
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(Top image via the PlayStation Blog)