In a recent discussion with investors, Sony Interactive Entertainment’s CEO and CFO, Lin Tao, candidly addressed the challenges facing the company’s live-service gaming strategy. As reported by TWIVG, Tao acknowledged that the transition to a service-oriented portfolio has encountered some turbulence, a sentiment echoed by the recent cancellation of the game Concord shortly after its release, as well as the postponement of Bungie’s highly anticipated title, Marathon. Additionally, several other service-based projects in development have also been shelved.
Insights on Live-Service Games
Tao reflected on the evolution of live-service games within PlayStation Studios, noting, “Somewhat negative news has been coming out, but if you look five years ago, live-service games were almost non-existent for PlayStation Studios.” He highlighted the current contributions of titles such as Helldivers 2, MLB, Gran Turismo 7, and Bungie’s Destiny 2, which collectively provide a stable stream of sales and profit.
According to Tao, the live-service ratio for Q1 stood at approximately 40 percent, with projections for the full year estimating a slightly lower figure, between 20 to 30 percent. He acknowledged the hurdles faced during this transformation, stating, “It’s not entirely going smoothly, but from a longer-term perspective, if you look at the changes over five years, you see that there has definitely been change.”
However, Tao was quick to emphasize the need for improvement, admitting, “Of course, we recognize that there are still issues – many issues – so we should learn lessons from mistakes and make sure that we introduce live service content, where there’s less waste and it’s more smooth.”
Marathon’s Uncertain Future
When questioned about the status of Marathon, which was delayed from its original September release due to a less-than-ideal alpha test, Tao stated that while the game currently lacks a definitive launch date, Sony is optimistic about its release within the current fiscal year, aiming for completion by March 2026. “But having said that, this is not a commitment, and no official announcement has been given yet,” he clarified. “Based on the progress [made] in the Autumn timeframe, we believe we can communicate when we will be launching.”
Tao expressed confidence in the ongoing efforts to rectify existing issues, asserting, “We believe this launch will happen. If this launch is cancelled, we need to do a revision of the valuation. However, as of now, this is not expected.”
Bungie’s Integration into PlayStation Studios
Lastly, Tao addressed the evolving relationship between Sony and Bungie. Following Bungie’s acquisition, the studio initially operated as an independent subsidiary. However, recent structural reforms have led to a shift in this dynamic. “We have gone through structural reform, as we announced last year. So this type of independence is getting lighter. So Bungie is shifting into a role which is becoming more part of PlayStation Studios,” he explained.
Looking ahead, Tao indicated that this integration is part of a broader strategy, stating, “In the long term, you can see this as an ongoing process, so the direction is to become part of PlayStation Studios.”
