Sony Online Entertainment
has confirmed the rumors that have been circulating since last night in
a press release. The company is closing several offices, laying off
staff, and discontinuing production of The Agency:

"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."

SOE's John Smedley has told Planetside-Universe.com that "PlanetSide Next
is getting more resources and will be out a little later in the year,
but [SOE is] pulling out all the stops to make it great."

An official post on the Vanguard forums notes that
"there are no plans to sunset the world of Telon so long as its citizens
continue to dwell in such sustainable numbers."

Likewise, EverQuest players have been told that "EverQuest is not going anywhere."