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 jobs.

Additionally, SOE announced the cancellation of The Agency, the long-delayed, cross-platform spy MMO under development at SOE Seattle. The company said it's 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.

Official statement from SOE:
"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."

This article was originally published on Joystiq.