Sony Online Entertainment has confirmed rumors of layoffs, as Bloomberg has word that SOE is closing its Denver, Seattle, and Tuscon studios, cutting 205 jobs, and cancelling development of The Agency, their planned PC and PS3 espionage-themed MMOG. They say SOE president John Smedley has said the company will develop more free-to-play and casual games. They also quote spokesperson Taina Rodriguez saying: "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."
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