What? I didn't see this coming. Since the Concrete Genie release around 3 years and a half ago they were making an Unreal Engine game in collaboration with Sony Pictures Animations, a type of collaboration that Sony is engaging corporation wise between divisions.
they fired ueda years before they canned japan studio
Losing Japan studio still hurts. I hope Sony realizes they need more studios in Japan some day because Asobi and Polyphony aren't enough. We need more variety in genres like rpgs and horror.
They didn't shut down Japan Studio, they restructured it changing its management and splitting its two parts into two separate offices, putting its 2nd party publishing part to report to their global 2nd party publishing team, as did before in Europe and USA.
Notice how the common denominator is the closed studios either hadn't released anything worthwhile or released a flop. I think MM'S next game needs to be Little big planet status or they'll be closed too.
All Media Molecule games have been profitable, got great reviews and won a ton of awards. They are also pretty small and many of their members are juniors/trainees straight from the University or from their game communities. I think they won't shut them down, and least in the next few years.
The closed studios were unprofitable ones, the ones who mostly released games with poor sales and reviews. Not the case of Media Molecule.
In fact now that Sony is also betting hard on GaaS in addition to also increasing their bet in non-GaaS game, LBP was -with PS Home- their first GaaS hit. And was a game that influenced even Nintendo.
Also, Pixelopus was working since 3 years and half ago in their current project, nothing too big or expensive specially because it was a pretty small team.