Sony Pictures is planning to shut down its visual effects and virtual production firm Pixomondo to focus on Sony Pictures Imageworks, headquartered in Vancouver. This move is part of a wider production shift away from traditional U.S. industries in favour of Canada. The company's VFX operations will shut down after outstanding projects or contracts are completed, and it plans to streamline internal VFX work internally to Imageworks. PXO Clara, the Game of Thrones VFX house’s LED volume division, will also begin the process of closing down. The move underscores the increasing appeal of Canadian animation and VFX tax incentives as major studios and streamers reduce blockbuster movie budgets and cut production.