Over 200 employees let go and 3 studios closed.  Sad situation and heres to sending good vibes towards those affected. 
 
Link(IGN) 
 
Here is the statement from SOE: 
  
 "As part of a strategic decision to reduce costs and streamline its global workforce, SOE announced today that it will eliminate 205 positions and close its Denver, Seattle and Tucson studios. 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. 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. 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, and servicing the 20 million players that visited SOE servers in just the past year."    

I have mixed feelings on this.  On one hand, I'm disappointed by the people in my city joining the ranks of the unemployed. 
 
On the other hand, doesn't SOE have enough MMOs going?

I wonder if DCU Online affected this in any way. Maybe they were expecting it to be a bigger hit or something.

Not too surprised. Does Sony really need two games so similarly named?
 
As long as Rockstar North's AGENT is still coming out, I'm fine with it.

i'm not surprised sadly.

Oh yeah, I recently wondered where this went? 
 
That's a damn shame, the game could've been good or rubbish, but it's terrible how so many people lost their job over it.

I really don't like to speculate, but do you think that DCUO's performance or lack thereof has in anyway contributed to this decision? T'is interesting.

That's kinda messed up.
I remember back before my PS3 owning days this be one of those games making me say "damn" I'm probably gonna have one of those at some point.
 
In the end, regardless of my opinion, this is probably the wiser decision.

" I wonder if DCU Online affected this in any way. Maybe they were expecting it to be a bigger hit or something. "

" I really don't like to speculate, but do you think that DCUO's performance or lack thereof has in anyway contributed to this decision? T'is interesting. "

Not surprised.  Only time I've heard of The Agency was at E3, when it was announced.

It's telling that I totally forgot this game existed before I saw this thread. It's always sad when people lose their jobs, but considering the general stagnation of the MMO market this is probably a better thing in the long run.

I remember being interested in this when I first heard stuff about it.  I might would have actually checked out The Agency....I have no interest in EverQuest, at all.  Too bad it never panned out, especially for those that were working on it and got fired.

Not suprised game has been in devolpment forever

Sad news, but it's too bad that DC Universe Online didn't get cancelled instead.