Following rumours and reports across the internet recently, Sony Online Entertainment (SOE) has confirmed the closure of its development studios in Denver, Seattle and Tucson.

As a result, 205 employment positions at SOE have been made redundant while the long-in-development massively multiplayer online action game The Agency has been cancelled in order to “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.”

According to a statement released by SOE, “[a]ll possible steps are being taken to ensure team members affected by the transition are treated with appropriate concern.”

The rest of the statement read:

”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.”

Reports doing the rounds claim that SOE’s Austin and San Diego studios have also been hit by redundancies.

SOE will continue to operate its current range of online games including Star Wars Galaxies, Free Realms and DC Universe Online.

Our thoughts go out to those affected.