Sony Online Entertainment has confirmed the closure of its Denver, Seattle and Tucson studios - eliminating 205 jobs - and the cancellation of troubled cross-platform spy MMO The Agency.

"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," explained a SOE statement. "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."

Via Joystiq

The Agency was announced in June 2007 and most recently was set for a second half of 2011 release. The title showed some promise, but given its prolonged development time we can't say we're shocked at the news of its demise.