SOE Lays Off Over 200 Employees, The Agency Canceled

Yesterday, we reported that Sony Online Entertainment was rumored to have laid off a third of its employees and shuttered its Seattle, Tucson, and Denver studios. Unfortunately, that news has turned out to be true, as GameSpot brings word that a total of 205 employees have been given the pink slip - and their ambitious modern-day MMO The Agency has been outright canceled.
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.
Just another reason to dislike the term "streamline". Thanks, Ares2382.