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Sony Online lays off hundreds, cancels Agency

DC Universe Online developer shuttering Seattle, Denver, and Tucson studios, refocusing on new PlanetSide and Everquest MMOGs.

335 Comments

Last July, Sony Online Entertainment cut 4 percent of its workforce. Now, if reports are correct, the layoffs are continuing…at a heftier rate.

The Agency was originally announced in 2007.
The Agency was originally announced in 2007.

As has become somewhat common with game industry layoffs, the news was first reported by 3D Realms president George Broussard on his Twitter feed. Broussard initially reported yesterday that SOE Seattle was undergoing layoffs and The Agency studio may even be closed. Within hours, he followed that up with word that the layoffs expanded beyond the Seattle shop and that multiple SOE studios would be closed today, with Denver among the rumored cuts.

As of press time, representatives with Sony and Sony Computer Entertainment had not responded to GameSpot's request for comment or clarification on the matter.

However, gaming blog Kotaku cites "a source familiar with the matter" as saying Sony Online Entertainment has closed three entire studios, laying off one-third of its staff in the process. The studios reportedly shut down are Sony's branches in Denver, Co.; Tucson, Ariz.; and Seattle, Wash. Additionally, Kotaku reports that half of the workforce at SOE's Austin, Texas branch were given the pink slip, as well as a "sizeable" portion of Sony's San Diego, Calif., studio.

The news comes in the wake of two major launches for Sony Online Entertainment. In January, the company released DC Universe Online--SOE's fastest selling game of all time--after more than five years in the works. Additionally, the publisher launched its free-to-play online game Free Realms on the PlayStation 3 earlier this week.

This would be the third major round of layoffs at SOE in as many years. In July of 2009, the company let 41 staffers go, barely a month after Free Realms' original PC launch. That downsizing eliminated 5 percent of the company's workforce, or 41 positions.

Broussard has proven regrettably accurate when tweeting about the latest layoffs in the game industry. In the past year alone, the 3D Realms veteran has been among the first to detail developer downsizings at LucasArts, IO Interactive, EA Canada, and Black Box, among others.

[UPDATE]: Sony Online Entertainment confirmed for GameSpot today that it is closing the Seattle, Tucson, and Denver studios, and is shedding 205 positions in the process. The long-in-development online game The Agency has also been canceled. SOE's full statement follows below:

As part of a strategic decision to reduce costs and streamline its global workforce, SOE announced today that it will eliminate 205 positions and close its Denver, Seattle and Tucson studios. As part of this restructuring, SOE is discontinuing production of The Agency so it can focus development resources on delivering two new MMOs based on its renowned PlanetSide and EverQuest properties, while also maintaining its current portfolio of online games. All possible steps are being taken to ensure team members affected by the transition are treated with appropriate concern.

This strategic decision will have no impact on SOE's current portfolio of live games; additionally SOE will transition development efforts for the Denver and Tucson studios’ suite of products to its San Diego headquarters. This strategic alignment of development resources better positions SOE to remain a global leader in online gaming and deliver on its promise of creating entertaining games for players of all ages, and servicing the 20 million players that visited SOE servers in just the past year.

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diesil

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wasnt enough info on the agency to get even excited about lol

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moozeditty

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@awheaten No sweetie, grown ups don't think in those terms. Grown ups have allegiances to people, not consoles or giant multinational corporations. I'm somebody with friends at SOE San Diego and others working in smaller gaming studios under the umbrella of Sony. I'm sure their coworkers are really sad that their getting fired made your gamespot visit less enjoyable, but I'll bet they wish you the best in your silly devotion to their bosses' bosses' bosses.

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CaptianPeachfuz

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SO THIS MEANS PS3 PRICE DROP? :)

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awheaten

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You have been exposed: you are a FanBox...

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moozeditty

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It's number one because it's big news. Just like it's big news when Microsoft lays people off, or Nintendo, or EA, or Activision, or any major game company. Don't believe me? << LINK REMOVED >><< LINK REMOVED >><< LINK REMOVED >> Now go into the search function, type the name of any game company you can think of followed by a comma followed by "lays off" or "fired" or "let go" or the like and see what you can find. People's livelihood is more important than your silly perception of how nicely the site is treating your favorite game console. Just because YOU don't want to read it here does not make it less newsworthy. Now stop being part of what makes gaming journalism so terrible and hush.

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3D3

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It was inevitable

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Avatar image for awheaten
awheaten

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@moozeditty You said, "There's too much kowtowing to the megacorporations as it is. If you don't want to learn about what's going on, stop reading, stay ignorant, it's your choice. The rest of us benefit from this information, people connected to the industry benefit from this information, the folks who lost their job are not beneath our notice." Couple of things: 1. U don't no me, so how do u know that I cannot connect w/other people who were laid off, I just don't want 2 read about it here. And because it is Sony, it is #1 on yaw blog listings (fanboys!) 2. That comment I copied and pasted just let me no u don't no the context of the article. This is not gaming news this is something every company through. M$ layoff, so does banks and other industries. Are u going 2 report those 2?... I think not. A gamer is a gamer... They just need 2 let us no that Agency isn't coming out and why, thats all. 3. Lastly, I never said u were humiliating me, I said ur TRYING 2 humiliate me. No1 is interested in ur blog and ur coming after me except u.

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Hvac0120

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I was really looking forward to The Agency. :`(

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PMAstyle

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I'm still in denial about all this...

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superjenius

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Crap. I was looking forward to this game. SOE must have invested a ton of money into it by now, only to have it cancelled. I'm guessing the decision came from higher up. Sadly, this probably affects devs we got to know in the Matrix Online community (like Walrus), but I'm sure these talented people will all find new work.

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AcidSoldner

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@CaptainCrazy SOE has absolutely nothing to do with Final Fantasy XIV... it's a Square Enix property and game.

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moozeditty

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@awheaten Economics IS gaming news. Hundreds of people in the gaming industry losing their jobs IS gaming news. The development of a game getting cancelled IS gaming news. Get over your fanboyism and stop asking for less from a blog whose sole purpose is to deliver gaming news. There's too much kowtowing to the megacorporations as it is. If you don't want to learn about what's going on, stop reading, stay ignorant, it's your choice. The rest of us benefit from this information, people connected to the industry benefit from this information, the folks who lost their job are not beneath our notice. You don't need my help in humiliating yourself, you're doing fine.

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SuplexKirby

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Was really looking forward to The Agency. First Eight Days, then True Crime Hong Kong and now this? It's sad that 205 got fired. Hope they find work soon.

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MuddVader

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@CaptainCrazy SONY, not SQUARE ENIX ahahaha

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awheaten

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@moozeditty This is not gaming news, this is economics. All I'm saying is that good new for this site. They get off on this. If they want to do this kind of journalism, they should work for CNN. Why don't you grow up and quit @ing me in your comments. Just make your oppinion known w/o trying to humiliate me. That is immature.

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floydshayvious

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Desperate times. The thing is, people who loose their jobs become even more desperate, as their moral compasses fade. Sad for everyone these days.

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CaptainCrazy

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I'm not surprised to see this after they released that heaping, steaming pile of turd that is FF14

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envybianchi

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4th month into 2011 & 205 being laid off...... Not the best way to start the year for those folks but hopefully they will find a new job soon. Good luck!

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moozeditty

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@awheaten You place your affection for a megacorporation over any demand that a gaming news blog post actual news about gaming. I'm sorry their timid attempts at journalism hurt your console's feelings, but maybe you would prefer your news delivered via youtube posts from sonyfan1998. Seriously, grow the ___ up.

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lexluis

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Well thats a let down

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djwood84

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Sad to hear about more companys laying people off, but SOE is pretty horrible. They lost me as a customer when they killed SWG, but looking at the MMO's they've done since, it hasn't been too hard to stay away. DCUO sold a lot of copies, but if those people aren't paying for renewing subscriptions, its a financial loss.

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Rocker6

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[This message was deleted at the request of the original poster]

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awheaten

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@moozeditty I'm am grown. Just stating the obvious. The fanboys are the ones who wrote this article.

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PyscoJuggalo

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Yeah layoff the poor schlubs that take orders, don't fire that stupid SOB John Smedley who caused this mess that SOE is in today. John Smedley created a company known for screwing over its customers and hyping stupid marketing gimmicks while fearing true innovation. SOE America will be defunct because of this boob and he will be the last one to lose his job.

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moozeditty

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@fadersdream Because losing your job is worse than getting your feelings hurt on the internet.

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maxwell97

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I don't find this too surprising. SOE has always been a paragon of mediocrity in the world of online games. Too bad people have to get laid off, but they'll survive.

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deactivated-641bd8d21037b

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money

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jmartin1016

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They were no longer a viable business venture. That sucks. It's not like they had a choice in what they worked on, but 5 year development cycle is a death sentence for a studio unless the product shines with awesomeness.

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fadersdream

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@moozeditty why disrespect someone to make a point about respect?

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kaziechameleon

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april fools!

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MarcJL31

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This is unfortunate for those who have lost their jobs. And I was looking forward to Agency. Sad to see games with so much potential not even make it to the market.

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Unholy123

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Planetside was great during its beta when they launched this amazing game where you could fly this bigass dropship into the middle of enemy zone hot drop a squad in while they stole the base... then they added the latice systemt that was like hey no we here at sony prefer you to zerg just zerg no skill we just wanna see whatever side that can put MORE people going for this one base cause you cant take any other one then this one connected to the last one turned the game from potential into boring ass seen it before dont wanna play it fps that had bad lag. So heres to you sony lets see how you manage to screw this one up.

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Lara_Lover92p9

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NOOOOO! I've been waiting YEARS for the agency!! God dammit! Why do so much work on something then say 'oh well lets stop this and start something new.'

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moozeditty

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@awheaten Grow up, fanboy. This is major news. Show some respect to the folks who have lost their jobs.

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deathblow3

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its always a shame when you dont get to see if a game is good or bad for your self. i like to judge the games i play myself and not have it dictated to me by some one else.

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awheaten

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Why are stories about Sony's misfortune always TOP stories on GameXboxSpot. That is really bogus.

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EdibleFood

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Not surprising, i expected that the agency was cancelled 2 years ago. In all honesty, it looked like a ps3/xbox launch title, and every time they presented it, it looked more and more dated

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Alex_09

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I guess it really was better than alpha protocol.. Nobody was tricked into wasting sixty bucks on this game.

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jcopp72

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this definatly looks like an April fools story.

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The_Freeman

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Im with SamiRDuran, couldnt have said it better myself. Although seemingly harsh and unforgivable, its a dead-on comment, as it applies to 90% of console gamers.

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Yuck_Too

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Planetside was an amazing game. Aside from the repetitive scenery and objectives (and sightly steep monthly fee for such things) it deserved to do better than it did as it was wonderfully balanced and truly unique for its day.

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pszone

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Sony has no furture for mmos maybe for the best oh well i knew the ageny wasnt comeing out and i know there fears the agent not coming out bu rockstar games

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warhawk-geeby

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Yeah the Agency being cancelled doesn't come as a suprise at all. It just didn't seem to be happening. All went quite over a year ago. Shame about folks losing their jobs though. That's the thing with a recession, lots of companies just use it as an excuse to lay people off because normally they wouldn't have rights to do so. Im not saying that the gaming industry is guilty of this, but it wouldn't suprise me. Business is business.

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-HCMF-

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Sucks

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bottomdollar

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Sorry for the people who lost their jobs. These games may not have meant much to most ppl, but I was looking forward to at least TESTING The Agency. So no Agency, no Time Splitters 4, no Battlefront 3, all after having screen shots, gameplay and/or trailers. All games I was looking forward too. Again, more importantly, sorry to the ones who lost their jobs...

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Gamingcucumber

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And the next day they will recieve a letter that sais "APRIL FOOLS!" *hope they get it sorted out and can help them get on track later

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macca366

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I won't miss the games that were discontinued at all, but I hope that the hundreds of people that were laid-off find jobs and have a decent income soon.

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lowkey254

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I pray that they can get on their feet. maybe pool together and start another project.

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Zero_resistance

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That's a large chunk of SOE gone, but nevermind, the redundant staff will probably be snapped up by another developer.

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