Sony, the company behind PlayStation, has put out some great games recently, but they’ve also made some missteps. Over the past few years, they’ve faced criticism for decisions like the unexpected price hike for the PS5, and none of their exclusive games have become as popular as some had hoped – particularly with the disappointing launch of Concord.
One of Sony’s biggest mistakes of the last decade was its strong push into ongoing, online ‘live service’ games. Former PlayStation CEO Jim Ryan had planned to release twelve of these games by 2026, which upset many players who loved PlayStation for its story-driven, single-player experiences. While Sony has since reduced this goal – with only two such games released on the PS5 by 2026 – this shift in strategy hasn’t been without negative consequences, including the cancellation of promising projects.
Studios That Sony Has (Probably) Closed Because of Its Live-Service Mission
- Firewalk Studio
- London Studio
- Neon Koi
- Bluepoint Games
Sony has closed several development studios recently, and a major reason seems to be unsuccessful attempts at creating ongoing, live-service games. A prime example is Firewalk Studios, which Sony bought in 2023, only to shut down in 2024 after canceling their first and only game, Concord. At the same time, Sony also closed Neon Koi, another studio working on a live-service game for mobile devices.
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In 2024, Sony closed another one of its game development studios, this time London Studio, a team with a significant history. Originally established in 2022 as Sony Interactive Entertainment London and later rebranded in 2016, the studio was known for popular franchises like SingStar and Getaway. They were developing a new online action game, codenamed Camden, when the studio was shut down. While the closure was part of larger layoffs at Sony, the decision to cancel Camden instead of moving it to another studio suggests the game’s fate was directly tied to the studio’s closure.
The closure of Bluepoint Games is perhaps the most surprising of all. They were known for creating outstanding remakes, particularly of Shadow of the Colossus (2018) and Demon’s Souls (2020), which were praised for staying true to the original games. Reports indicated Bluepoint was developing a live-service God of War game, but Bloomberg reported it was canceled in 2025. Sony then announced Bluepoint would be shutting down in February 2026. Although Sony hasn’t directly stated a connection, it seems likely that the canceled God of War project contributed to the decision to close the studio.
Other Sony studios, like Dark Outlaw Games and JapanStudio, have also closed down recently. Although they weren’t directly involved in live service games, the significant financial losses from canceling several projects likely contributed to their closure. At the very least, Sony may have seen these studios as expendable and decided to close them to offset those losses.
Live-Service Games Sony Has Canceled During the PS5 Era
- Bend Studios live service
- Twisted Metal live service
- The Last of Us live service
- Spider-Man: The Great Web (Insomniac Spider-Man Live Service)
- London Studio live service
- Neon Koi live service
- Bungie’s code-named Operation Payback
- God of War live service
- Concord
- Destruction AllStars
- Camden
As we’ve discussed, Sony canceled or removed many games when they closed studios. These included Camden, Concord, a live-service game from Neon Koi, and a God of War live-service project. Several other live-service games, like Destructive AllStars (which was removed from sale in May 2026), were also shut down, sometimes even separate from studio closures. This shift away from live-service games at Sony is still happening.
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The recent wave of canceled live-service games is particularly worrying, especially when you consider what happened to studios like Bluepoint Games. They were thought to be secure earlier in 2024, but were closed just a year after the cancellation of their God of War project. While major studios like Insomniac and Naughty Dog are likely safe despite canceling their Spider-Man and Last of Us live-service games, it’s unclear if smaller teams like Bend Studio or Lucid Games (the creators of Destruction AllStars) will be so fortunate. Even Bungie isn’t entirely secure; they canceled Operation Payback (rumored to be Destiny 3) and are now focusing on Marathon, but if that new game doesn’t succeed, Bungie could also face difficulties.
As a big fan, I’m really torn about Sony stepping back from live-service games. Honestly, I’d much rather have a brand new, story-driven God of War than one that’s constantly updated as a live service. If this means we get more amazing single-player games, that’s a win! But it’s also incredibly disappointing to think about talented studios like Bluepoint Games and London Studio potentially being shut down because of Sony’s attempt to jump on the live-service bandwagon. I don’t know if these studio closures are the right business decision, but it feels like a huge loss of potential. We might never see the incredible games those studios could have created, and that’s just frustrating.
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2026-05-27 15:05