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An important update on Concord - Being taken offline September 6th, refunds to be issued
(blog.playstation.com)
this post was submitted on 03 Sep 2024
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Do they lose their jobs?
They delivered the product, they got paid for their work.
I can't imagine hundreds of people still working on the game beyond release. They'll probably move on to different projects.
A failure this monumental will almost certainly result in Sony taking the entire studio out back and shooting it, just to placate investors.
Edit: For context, Sony owns Firewalk - the studio - outright, they're not just the publisher.
Most big game corps just shutter studios, usually letting them know via the grapevine after a board meeting or twitter post...