Well, this just plain sucks. There's not a good way to say it -- especially since I'm very biased, with some good friends involved -- but Sony Online Entertainment has shut down three studios, laying off 205 people! Bugger. I've got good friends in the SOE Denver studio, so this hits me a bit harder than this news might otherwise, but is bummer news any way you get it. I hate to see creative teams disassembled like this. Best of luck to all of those displaced. I hope you all find new places to create as soon as possible.
Here's the news via Gamasutra: SOE Hit With 205 Layoffs, Three Studio Closures, "Agency" Cancelled
Incidentally, this also marks yet another blow on the console MMO front, as The Agency was looking to be a big entrant into that field. It seems that Sony's push for MMOs on the PS3 is still struggling to gain traction... understatement, I suppose.