Following earlier reports of studio closures and mass layoffs, Sony Online Entertainment has issued an official statement regarding its "strategic decision to reduce costs and streamline its global workforce." The company confirmed the closings of its Denver, Seattle and Tucson studios and the elimination of 205 positions.

Additionally, SOE announced the cancellation of The Agency, the long-delayed, cross-platform spy MMO being developed by SOE Seattle. The company said it is discontinuing production of the title 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."

SOE added that the Denver and Tucson studios' projects would be transitioned over to its San Diego headquarters. The company's full statement is posted after the break.