Sony Admits Problems with Live Service Model

The live service model has become one of the most controversial strategies in the gaming industry in recent years. While Sony’s initiatives in this area began with high hopes, recent statements have cast a less bright picture. Evaluations following the company’s financial report reveal that the process has not progressed as smoothly as planned.

The Balance of Power in the Live Service Strategy is Shifting

Sony’s Chief Financial Officer, Lin Tao, openly assessed the landscape of live service games at a recent investor meeting. Following the massive failure of Concord and the significant delays in Bungie’s Marathon project, Tao summarized the current situation by saying, “Everything is not going smoothly.” Nevertheless, the company remains interested in this model.

According to Tao, the live service landscape has undergone a significant transformation compared to five years ago. Currently, four different live service projects under the PlayStation Studios umbrella—Helldivers 2, MLB The Show, Gran Turismo 7, and Destiny 2—are contributing to sales and revenue. Helldivers 2, which is reported to have sold over 12 million units, stands out as the most successful example of this strategy.

However, these successes are overshadowed by significant financial losses. While Concord’s estimated cost is between $200 and $400 million, the return is thought to be only a few million dollars. Furthermore, Marathon’s indefinite postponement after a poor alpha testing period and the complete cancellation of some projects raise questions about the sustainability of the model.

Despite this outlook, Sony maintains that this transformation has created significant change in the long term. Lin Tao stated that 40% of revenue came from live service projects in the first quarter of the year, and that this ratio remained between 20% and 30% for the entire year. Tao also expressed hope for the future, saying, “We will learn from mistakes and work to deliver more efficient, more sustainable content.”

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