Sony Online Entertainment has closed three of its studios and according to reports will be laying off close to a third of its staff.
Rumors pointing to the closures first ignited when George Broussard, co-creator of the Duke Nukem tweeted: "Word is that Sony Online Entertainment Seattle is having layoffs and that studio closure is possible."
It has since been confirmed that Sony Online Entertainment studios in Seattle, Tucson and Denver have been affected and over half the staff in its Austin studio has been cut.
SOE recently released DC Universe Online for the PC and PlayStation 3. Studio president John Smedley confirmed in January that the title is its fastest selling game ever.