Apr 1, 2011 18:21 GMT  ·  By

Sony Online Entertainment, the company's MMO-oriented division, has just announced that it has made over 200 layoffs today, closed down three studio locations and stopped the development on The Agency MMO project.

Sony Online Entertainment is known for online games like EverQuest, PlanetSide or the more recent Free Realms MMO, which was released this week for the PlayStation 3.

Now, the company has announced that it will be cutting 205 positions, the closure of three of its US-based studios, and the axing of The Agency MMO project which was in development for quite some time.

"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," the company revealed to Kotaku.

"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."

While the layoffs aren't that big of a surprise, considering rumors that appeared earlier this week, the axing of The Agency is quite shocking, especially since the project was in development for quite some time now at SOE's Seattle studio.

The game promised to deliver a new type of online experience, where gamers would play as spies tasked with eliminating rival agents in various paranoia-filled circumstances.

At the same time, the online title was also set to feature solid shooter mechanics, with the ability to jump from first to third person views.

Like Free Realms, the MMO was set to appear at first for the PC and then on the PlayStation 3 console.