Sony’s CFO Lin Tao has acknowledged that the company’s strategy for live-service games is facing challenges, despite an optimistic outlook when it was first introduced in 2022. The strategy, which aimed to pivot several of its renowned single-player studios toward live-service titles, has experienced a number of setbacks, including prominent game cancellations and delays.

Former PlayStation CEO Jim Ryan had outlined an ambitious plan to launch twelve live-service games by 2026, resulting in the reallocation of resources across multiple studios and the acquisition of Bungie for $3.6 billion. However, following Ryan’s departure in 2023, concerns about the viability of this strategy emerged. Reports indicated that Sony was uneasy about the direction the live-service focus was taking.

By the end of that year, the standalone multiplayer title from Naughty Dog set in “The Last of Us” universe had already been scrapped, leading to additional cancellations including planned titles from Insomniac Games and PlayStation Studios’ London Studio. The failure of its game Concord resulted in workforce reductions and studio closures, with rumors suggesting that other significant projects were also affected.

Investors voiced their apprehension regarding PlayStation’s live-service initiatives during a recent financial Q&A session. Lin Tao recognized the negative feedback surrounding the strategy, marking a shift in Sony’s approach to live-service titles. She suggested that while the transition has encountered bumps, there are positive developments when viewed over a five-year span. Tao pointed out that PlayStation Studios now includes several successful live-service games contributing to ongoing sales and profitability.

While acknowledging existing issues, she emphasized the need to learn from past mistakes and to approach live-service content with greater efficiency. The company’s commitment to a varied portfolio of live-service games continues, with new titles like Fairgames on the horizon.

Regarding Bungie’s role within the PlayStation ecosystem, the studio’s independence is set to be curtailed as it becomes integrated into PlayStation Studios. This adjustment comes amid reports of management challenges and delays since Bungie’s acquisition, alongside increased concerns from fans about Destiny 2.

Tao noted that when Bungie was acquired, it was granted significant autonomy. However, following structural changes within Sony, this independence is now being phased out as Bungie aligns more closely with PlayStation’s operations. Looking forward, Bungie’s next project, the PvP-oriented Marathon reboot, has faced an indefinite delay but is expected to be launched within the current fiscal year, although no official date has been set. Tao expressed optimism for the game’s release while acknowledging that its cancellation could lead to a reevaluation of Bungie’s value within the company.