Sony’s chief financial officer, Lin Tao, recently shared some mixed news about live-service gaming for PlayStation. After facing setbacks like the failure of Concord and delays with Bungie’s Marathon, she acknowledged that the transition to live-service games is “not entirely going smoothly.” However, Tao pointed out that there have been successes despite some costly hiccups.
For instance, over the past five years, PlayStation has seen a rise in live-service titles. Tao highlighted four games that are performing well: Helldivers 2, MLB The Show, Gran Turismo 7, and Destiny 2. While Helldivers 2 has already sold around 12 million copies and is a major hit, it’s notable that Destiny 2 was released back in 2017, long before Bungie joined Sony. The annual release of MLB The Show makes it a unique case, as it operates somewhat differently from typical live-service offerings.
Despite these successes, the situation looks grim for some projects. There are rumors that Concord cost between $200 million and $400 million but only generated around $1 million in revenue. This raises questions about whether Sony’s new strategies are paying off. Tao reported that live-service games made up about 40% of revenue in the first quarter, but that figure is expected to drop to 20-30% for the full year. She emphasized that while progress has been made, there’s still much to learn from mistakes.
As for Marathon, it faced harsh criticism during its alpha testing, leading to its indefinite delay. Adding to the challenges, Sony has also canceled several planned live-service projects, which raises further doubts about this direction. Despite these hurdles, there remains optimism within the company. Tao noted the need to streamline their approach and ensure fewer resources are wasted.
In a broader context, the rise of live-service games reflects a significant shift in the gaming industry, driven by consumer demand for ongoing content. A recent report showed that live-service games now dominate over 50% of the industry’s revenue, highlighting a growing trend. Players desire continuous updates, which can enhance engagement but also introduce risks when games falter, as seen with Sony’s recent struggles.
All in all, while Sony is navigating a complicated landscape, the company’s willingness to learn from its setbacks may lead to a stronger future in live-service gaming. Balancing innovation with caution could help them turn the tide and keep their audience engaged.
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