Sony admits its live service strategy is "not entirely going smoothly,” Bungie to lose more independence

Sony’s chief financial officer, Lin Tao, has admitted that the company’s ongoing push into live service games hasn’t gone as smoothly as planned but confirmed that it has no intention of scrapping its strategy.

The details:

• In a Q&A session following its latest financial presentation, Sony executives were questioned about the current plans for PlayStation's live service games, particularly given the poor reception or cancellation of several projects. Tao explained that, despite "many issues" with its approach and games, live service remains a critical component of the company's strategy since it provides a revenue stream that did not exist previously, accounting for 40% of its first-party software revenue in Q1.
• The executive stated that, despite Concord's costly failure and the recent delay of Bungie's Marathon, releases such as Helldivers 2, MLB The Show, Destiny 2, and Gran Turismo 7 are still "contributing to sales and profits in a stable manner."
• Tao also confirmed in the same Q&A that Marathon is still on track to release before March 2026, despite being delayed earlier this year due to the discovery that artwork was used in the game without permission. However, Bungie's future remains uncertain as Sony is attempting to integrate the developer more into its PlayStation Studios brand, with Tao stating that its "independence is getting lighter."
• Last year, Firewalk Studios' hero shooter Concord was released and then shut down within a month after years of development due to low player numbers, resulting in Firewalk's closure. It was then announced earlier this year that several live service projects at PlayStation had been canceled, one of which was said to involve God of War.

More gaming news:

• Guitar Hero veterans have formed RedOctane Games, a studio focused on developing new rhythm games.
• Grand Theft Auto and Saints Row are reportedly "at risk" of being delisted if payment processors continue to apply pressure on storefronts regarding games that violate their terms of service.