UPDATE: SOE has officially announced that "it will eliminate 205 positions and close its Denver, Seattle and Tucson studios." The company 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." Its current portfolio of games will not be affected. Check out the full announcement after the jump.
According to Kotaku, Sony Online Entertainment has closed three studios and will lay off nearly one third of its workforce. While SOE hasn't released an official statement, Kotaku says they confirmed through "a source familiar with the matter" that the closures affect the Seattle, Tucson and Denver offices. In addition, the source stated that numerous employees in the Austin and San Diego offices have also been let go from their positions.
The rumor began spreading last night when Goerge Broussard of Duke Nukem fame tweeted, "Word that Sony Online Entertainment Seattle is having layoffs and that studio closure is possible." He quickly followed that by saying, "To be more clear, the layoffs may be SOE wide and not just limited to Seattle. So, Austin, San Diego, etc..."
Broussard's latest tweet on the matter, which was posted 12 hours ago, said "SOE Seattle and other studios (Denver is rumored) will be closed tomorrow. Good luck to all impacted."