Sony’s chief financial officer Lin Tao has admitted PlayStation’s live-service strategy – which has seen a string of high-profile flops, delays, and cancellations after a bullish start back in 2022 – is “not entirely going smoothly”. Tao has also confirmed Destiny developer Bungie’s independence is to be reduced as it’s folded into PlayStation Studios.
Former PlayStation boss Jim Ryan infamously announced an ambitious live-service-focused future for the company in 2022, shifting many of its studios – best known for their acclaimed single-player titles – onto live-service development in order to release a planned 12 games by 2026. It also set up new live-focused studios, even acquiring Bungie for $3.6bn.
However, it didn’t take long for rumblings of discontent at the company to surface following Ryan’s decision to step down as PlayStation boss in 2023. Just days later, Bloomberg’s Jason Schreier reported Sony was “uncomfortable” about Ryan’s dramatic live-service gambit. By the end of that year, one high-profile live-service game – Naughty Dog’s standalone multiplayer The Last of Us title – had already got the chop, and other projects followed.
A live-service Twisted Metal Project was axed, alongside a live-service Spider-Man game from Insomniac, and a multiplayer project from PlayStation Studios’ London Studio. And following Concord’s dramatic flop last year, significant layoffs, studio closures, and more live-service cancellations – reportedly including a God of War game from Bluepoint and something from Days Gone developer Bend – have followed. Throw in reports of Sony’s increasing frustration with Bungie management, which seemingly recently peaked with Marathon’s recent delay, and it’s clear Ryan’s vision of a live-service future for PlayStation has been less than successful.
All of which brings us back to today, and concerned questions from investors regarding PlayStation’s live-service plans as part of Sony’s latest financial results Q&A. Speaking via an interpreter (as detailed by TWIV), Sony’s chief financial officer and corporate executive officer Lin Tao acknowledged the “somewhat negative news” its live-service strategy has so far generated, specifically referencing Concord and Marathon’s recent delay. “In terms of the transformation [toward live-service games],” she later added, “it’s not entirely going smoothly, but from a longer-term perspective, if you look at the changes over five years, you see that there has definitely been change.”
As to the significance of that timeframe, Tao explained, “Five years ago, live-service games were almost non-existent for PlayStation Studios… We 1754570174 have Helldivers 2, MLB, [Gran Turismo 7] and Bungie’s Destiny 2. So we have these four live services contributing to sales and profit in a stable manner.”
“Of course,” she added, “we recognise that there are still issues – many issues – so we should learn lessons from mistakes and make sure that we introduce live service content, where there’s less waste and it’s more smooth.” This follows comments from PlayStation Studios boss Herman Hulst earlier this year, saying company remains committed to building “a diverse and resilient” portfolio of live-service titles, including the upcoming Fairgames.
As for Bungie’s roll in PlayStation’s live-service future, its previous autonomy is set to be reduced. Bungie has moved from controversy to controversy since its acquisition in 2022, facing ongoing reports of mismanagement and executive toxicity. That’s alongside delays, layoffs, cancellations, lawsuits, claims of tumbling staff morale, plagiarism scandals, the reported underperformance of its releases, increasing fan frustration around the handling of its flagship title Destiny 2, and more. It’s long been reported Bungie’s autonomy could be on the line if the studio failed to turn things around, and it seems Sony is now ready to take control.
“At the time of acquisition, we were offering [Bungie] a very independent environment,” Tao explained of the studio’s relationship with PlayStation. “However, thereafter, we have gone through structural reform, as we announced last year. So this type of independence is getting lighter. So Bungie is shifting into a role which is becoming more part of PlayStation Studios. In the long term… the direction is to become part of PlayStation Studios”.
Next up from Bungie, of course, is its PvP-focused Marathon reboot, which was delayed indefinitely following a poor reception to its big unveiling earlier this year. At the time of its delay, Bungie said it would have more news to share this “autumn”, and Tao has now confirmed Marathon’s launch is expected to happen within Sony’s current fiscal year. “But having said that,” she added, “this is not a commitment, and no official announcement has been given yet.”
“We are now fixing the problems. So we believe this launch will happen. If this launch is cancelled, we need to do a revision of the valuation. However, as of now, this is not expected.”