Sony has officially acknowledged that Destiny 2 has failed to meet expectations following its acquisition of Bungie, with CFO Lin Tao revealing the company has recorded declining profits due to the struggling live-service title.

The details:

As part of Sony's Q2 FY2025 earnings report, Tao announced that Sony recorded an impairment loss of ¥31.5 billion JPY (approximately $204 million USD) against a portion of Bungie's intangible assets in connection with Destiny 2, alongside another ¥18.3 billion tied to development cost corrections. "Regarding Destiny 2, partially due to the changes in the competitive environment, the level of sales and user engagement have not reached the expectations we had at the time of the acquisition of Bungie," Tao said in a pre-recorded statement. "While we will continue to make improvements, we downwardly revised the business projection for the time being and recorded an impairment loss against a portion of the assets at Bungie."
Despite the weak performance of Bungie’s FPS, Tao did note that live-service games still made up 40% of PlayStation’s first-party software revenue, which includes MLB: The Show 25 and Helldivers 2, both of which were brought to Xbox earlier this year.
Sony acquired Bungie in early 2022 for $3.6 billion. The developer was planned to become a major part of the company’s controversial push towards live-service games. However, the studio has since faced several setbacks in the years since, losing almost half of its staff to mass layoffs, landing itself in several controversies surrounding stolen art work, microtransactions, and alleged mistreatment of employees.
Bungie's future now lies on the performance of its upcoming extraction shooter, Marathon, which was delayed earlier this year. The game is set to arrive by the end of March 2026, and if it fails to retain a solid audience and boost the studio’s revenue, it could be the end for the legendary Halo developer.

Destiny 2 has underperformed Sony's expectations since it acquired Bungie, company confirms