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http://ps3.ign.com/articles/115/1158571p1.html

Sony Online Entertainment has gone through a company-wide reorganization today, and in the process cancelled the long-developed massively multiplayer online project The Agency and closed studios in Denver, Colo., Seattle, Wash., and Tucson, Ariz. 

The reorganization, which will eliminiate approximately 205 jobs, was done so to "reduce costs and streamline its global workforce." The company also cancelled The Agency, first revealed in 2007, so it could "focus development resources on delivering two new MMOs based on its renowned PlanetSide and EverQuest properties." SOE claims this move will not affect it's current portfolio of titles available now, such as DC Universe Online. 

Below is SOE's statement in full: 

 

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.