Sony Online Entertainment has confirmed to GamesIndustry.biz that over 200 jobs are to be axed across its studios.
The company is cancelling work on the long-in-development PC and PlayStation 3 title The Agency and closing three of its studios in Denver, Tucson and Seattle.
"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."
Sony Online Entertainment released the PS3 and PC MMO DC Universe Online at the start of the year and this week launched hit free-to-play game Free Realms on the PlayStation 3.