Sony Online Entertainment closes three studios; social games suffer? [Updated]

(Update: SOE has provides an official response on the closure's effects on social games. Find the statement after the break.)

Sony Online Entertainment (SOE) has made an upsetting move today, closing its Denver, Seattle and Tuscon studios while laying off a total of 205 employees, Joystiq reports. While SOE has yet to make official confirmation, its social games could take a hit as both SOE Denver and Tucson worked on Facebook games. Sony's "strategic decision to reduce costs and streamline its global workforce" will result in the cancellation of development on The Agency, its awaited spy-combat MMO that SOE Seattle was working on.

The move was also made in favor of focusing development strength on the company's upcoming Planetside and Everquest MMOs. Unfortunately, the only studio left to create Facebook games is SOE headquarters in San Diego, Calif, which just released Catch A Killer on Facebook. Our best wishes go out to all those affected by the closures. SOE's full statement is after the break.