Sony Turns $400M Concord Fail Into a Laughable Tax Write-Off!

Rumor: Sony Set to Receive Massive Tax Write-Off After Shutting Down 'Concord' and Firewalk Studios

A new rumor is circulating that Sony is set to receive a significant tax write-off after the company decided to shut down Concord, along with its developer, Firewalk Studios.

According to insider information shared by YouTuber Endymion, many of the developers at Firewalk were initially confident that Concord would not be canceled, believing that it represented a major strategic opportunity for Sony. Sony America had reassured the studio that Concord would return stronger in the future. However, Sony Japan overruled this plan, stating that the game had failed and there was no reason to continue investing in it.

Endymion's sources claim that Sony's decision ultimately led to a tax write-off for both Concord and Firewalk Studios. It’s reported that Sony recouped between 25% to 40% of the total cost for the project through this write-off, potentially recovering as much as $150-$170 million, assuming a $400 million development budget.

The game’s quick shutdown came less than two weeks after its release, with Concord barely achieving a peak concurrent player count of just 697. Despite the game's early closure, Sony’s CEO Herman Hulst acknowledged that while some aspects of Concord were exceptional, the game didn’t attract enough players, leading to its permanent shutdown and the closure of Firewalk Studios by the end of October 2024.

The total cost of Concord's development has been a point of debate, with some estimates placing it at around $400 million, including both development and marketing costs. Former IGN writer Colin Moriarty claimed that Concord was developed in two stages: initially by Firewalk’s original owner, Probably Monsters, who spent $200 million, and then by Sony, who spent an additional $200 million on further development and marketing after acquiring the game.

Industry experts have supported the plausibility of this budget, with former Dragon Age director Mark Darrah noting that while the scope of the game was relatively small, inefficiencies and team mismanagement could have contributed to the high production costs.

This news paints a troubling picture for Sony, showing how internal conflicts and a botched project can result in significant financial fallout. Despite the failure of Concord, Sony is positioning itself to recover a large portion of the funds through the tax write-off, a decision that may also fuel further speculation about the company’s future plans and its approach to game development.