Earlier today we posted about a rumor first aired by 3DRealms’ George Broussard that Sony Online Entertainment (SOE) was about to make big cuts to both its staff and studios. That rumor has turned out to be true with SOE confirming the news in an e-mail to Gamasutra.In total, 205 jobs will be lost with the Denver, Seattle, and Tucson studios all being closed down. The other bad news is Sony has decided to cancel the online game The Agency which has been in development for several years now.The good news for existing SOE game players is that all existing titles will remain live and you can continue to play them as normal. As for future game development, two MMOs will now be the focus. The first is based on the PlanetSide IP, and the second on the always-popular Everquest IP.Fewer projects mean less people required and ultimately fewer studios have work, hence the closures. As far as an impact on gamers is concerned, the only noticeable difference is that The Agency will no longer be appearing on store shelves.Read more at GamasutraMatthew’s OpinionDevelopment of The Agency must have been experiencing problems or had fallen way behind schedule. It has been in development since 2007, and you don’t invest 4 years in a project then cancel it without a very good reason. It sounded like a very promising title from what we have heard over the years.It’s also surprising that SOE would choose to do the PlanetSide sequel instead of finishing The Agency, but again, this could be down to problems on that project we don’t know about.For existing players this news has probably come as a relief. The games you play regularly aren’t going anywhere, and the best thing you can do to support them is extend your subscription.