Sony’s Live Service Struggles Deepen as Destiny 2 Declines

Sony’s live service gaming strategy faces setbacks as Destiny 2’s latest expansion sees a sharp drop in players. Learn about the challenges affecting PlayStation’s future titles.

Sony’s live service gaming division is encountering growing turbulence, marked by declining engagement in Destiny 2’s latest expansion and mounting issues with high-profile upcoming projects. The gaming giant, which has committed $2 billion to its live service portfolio, now faces questions about its ability to sustain long-term player interest in this model. This article unpacks the latest developments, analyzes the broader pattern of challenges, and explores what lies ahead for Sony’s ambitious plans.

Destiny 2’s Latest Expansion Struggles

Destiny 2’s Edge of Fate expansion, released in 2024, has underperformed compared to its predecessors. According to Steam Charts data, the title peaked at just 99,193 concurrent players, a stark contrast to the 314,000, 316,000, and 290,000 players for The Final Shape (2023), Lightfall (2022), and The Witch Queen (2021), respectively. This 65%–70% drop in peak players signals a troubling trend for Bungie’s flagship game, which remains a cornerstone of Sony’s live service revenue.

Why the Decline Matters

Destiny 2 has been Bungie’s primary income source since its 2017 launch, relying on seasonal updates and paid expansions. The Edge of Fate slump comes amid broader fatigue in the live service genre, where players often expect continuous, free content over paid DLC. Analysts note that the game’s declining numbers could strain Bungie’s resources, especially after the studio recently laid off over 200 employees, including top executives.

Troubles for Sony’s Upcoming Live Service Titles

Two of Sony’s most anticipated live service projects—Bungie’s Marathon and Haven Studios’ Fairgame$—are embroiled in controversy and development hurdles.

Bungie’s Marathon: A Promising Start, Lingering Doubts

Marathon, a high-stakes PvP extraction shooter, was positioned as Bungie’s first major live service venture post-Destiny 2. Early alpha tests showed strong initial engagement, but players quickly abandoned the title after launch. Reports suggest the game lost 80% of its alpha playerbase, with critics citing repetitive gameplay, a locked 3-player format, and a lack of solo mode.

The absence of paid advertising for a project of this scale is also unusual. Given Sony’s $2 billion live service commitment, the decision raises questions about the studio’s confidence in Marathon’s monetization potential. Compounding these concerns is an art plagiarism scandal, where leaked concept art was accused of copying designs from lesser-known artists. Internal sources claim the controversy has hurt team morale at Bungie, further delaying progress.

Fairgame$: A Robin Hood Shooter in Turmoil

Haven Studios’ Fairgame$, a stylized co-op heist game, has also hit roadblocks. Early playtests described it as a “confusing Frankenstein” of elements borrowed from Fortnite, Payday, and The Division, lacking a cohesive identity. The project faced a major setback when Jade Raymond, its founder and artistic lead, left the studio earlier this year. Her departure has reportedly stalled development, with sources indicating internal disagreements over the game’s direction.

A Pattern of Live Service Setbacks

Destiny 2’s struggles and the issues with Marathon and Fairgame$ are emblematic of a broader pattern for Sony. The company had initially aimed to release 12 live service games by 2025, per its 2023 financial report. That target has now been halved to six titles, reflecting shifting priorities and operational challenges.

Previous Failures and Cancellations

Sony’s live service track record includes several high-profile missteps:

• Concord (2022): A multiplayer sci-fi shooter acquired as a free PS Plus title, it failed to attract a dedicated community and was shut down within months.
• Foamstars (2023): A battle royale game from Firewalk Studios was criticized for lackluster mechanics and closed after minimal player engagement.
• The Last of Us: Factions (2020–2024): A multiplayer spin-off from Naughty Dog was canceled after years of development, citing unsustainable long-term support costs.

Most recently, Sony quietly axed two unannounced live service projects, including a God of War-themed title. These cancellations highlight the difficulty of balancing creative vision with the financial demands of live service games, which require constant updates and content creation to retain players.

The Exception: Helldivers 2’s Success

Amid the setbacks, Helldivers 2 from Arrowhead Game Studios stands out as a rare win for Sony. The co-op shooter has maintained a strong player base through regular updates, community-driven feedback loops, and a focus on polished, self-contained missions. Unlike many live service games, it avoids microtransactions and emphasizes team-based gameplay, resonating with players who crave meaningful progression.

Key Takeaways from Helldivers 2

• Community Involvement: Arrowhead actively listens to player feedback, tweaking content and mechanics in real time.
• Content Over Monetization: By prioritizing regular, free updates over pay-to-win models, the game has fostered loyalty.
• Genre Niche: The game’s focus on strategic co-op play appeals to a dedicated audience, avoiding the broad, inconsistent player bases typical of many live services.

Helldivers 2’s success underscores that live service models can thrive—but only when executed with care and respect for player expectations.

Sony’s Strategic Dilemma: Live Services vs. Single-Player Hits

While live service games like Destiny 2 and Marathon struggle, Sony’s single-player titles have dominated the market. Recent successes include:

• God of War: Ragnarok (2022): Praised for its narrative depth and gameplay polish, it sold over 8 million copies.
• Marvel’s Spider-Man 2 (2023): A commercial hit with $1 billion in revenue within its first two weeks.
• Astro Bot (2024): A surprise indie darling that showcases PlayStation’s hardware and creativity.

These titles represent Sony’s “core strength,” as acknowledged in its 2024 earnings call. However, the company is doubling down on live services, a move that analysts call “a gamble against the tide.” The contradiction raises questions about Sony’s commitment to balancing its portfolio or overextending into a model that alienates its core audience.

New Studio, New Hopes: teamLFG’s Ambitious Project

In a bid to revive its fortunes, Sony recently launched teamLFG, an internal studio tasked with developing a “team-based action game” blending genres like fighting games, MOBAs, and “frog-type games.” The team includes veterans from Destiny, Halo, Fortnite, and Roblox, suggesting a mix of experience and innovation.

The Risks of Reinvention

teamLFG’s project is still in early development, but industry observers are skeptical. The studio’s unconventional genre fusion—juxtaposing fast-paced combat with platformer-style mechanics—mirrors the disjointed feedback Fairgame$ received. If this new title falters, it could trigger further studio closures, as seen with Firewalk Studios and Haven’s previous projects.

Analyst Perspectives and Industry Trends

Experts argue that Sony’s struggles with live services reflect a broader industry fatigue. Unlike free-to-play titles like Fortnite or Genshin Impact, which rely on microtransactions and seasonal events, Sony’s live service games often face criticism for over-charging consumers while underdelivering on content.

The “Live Service” Paradox

Live service games require “a constant flow of ideas and resources,” according to Mike Ryan of The Verge, who likens them to “a garden that needs daily tending.” Sony’s approach, however, has felt reactive rather than proactive. For example, Destiny 2’s Edge of Fate expansion reportedly took over two years to develop—a timeline that clashes with the rapid update cycles players now expect.

Meanwhile, competitors like Microsoft and Tencent have excelled in live services by treating them as “living ecosystems,” not just extended single-player campaigns. Sony’s mixed results suggest it may be playing catch-up in a space where player patience is thin.

What’s Next for Sony’s Live Service Ambitions?

Sony’s live service roadmap remains active, with projects like Marathon, Fairgame$, and a Horizon MMO in development. However, the path forward is uncertain. Key challenges include:

• Sustaining Innovation: Players demand fresh content at a pace rivaling free-to-play giants.
• Monetization Balance: Over-reliance on paid expansions risks alienating casual and core audiences alike.
• Studio Stability: Frequent cancellations and layoffs could deter talent from joining live service initiatives.

If Sony continues prioritizing live services without addressing these issues, it may face a cycle of investment and failure. The company’s ability to adapt will likely determine whether projects like teamLFG’s unannounced title can reverse the trend or become another casualty of the genre’s evolving landscape.

Timeline of Sony’s Live Service Developments

• 2020: The Last of Us: Factions announced, later canceled in 2024.
• 2022: Concord launches but is shut down after six months.
• 2023: Foamstars released with poor reception, closed shortly after.
• 2024: Destiny 2’s Edge of Fate expansion sees 99,193 peak players (vs. 316,000 for The Final Shape).
• 2024: Jade Raymond departs Haven Studios, delaying Fairgame$.
• 2024: teamLFG announced to develop a genre-blending live service title.

FAQ: Sony’s Live Service Challenges

1. Why is Destiny 2 in decline despite being a long-running IP?

Destiny 2’s Edge of Fate expansion underperformed due to a combination of market saturation and player fatigue. The live service model demands continuous innovation, but Bungie’s recent updates have failed to excite the community. With competitors like Genshin Impact and Diablo 4 capturing attention, Destiny 2’s 80% drop in alpha players highlights a shift in player preferences toward free-to-play or more self-contained experiences.

2. What are the key issues with Marathon and Fairgame$?

• Marathon: Poor early playtests criticized its repetitive gameplay and lack of solo mode. The locked 3-player format and art plagiarism scandal further damaged its launch.
• Fairgame$: Testers found it derivative, blending elements of Fortnite and Payday without a unique identity. The studio’s leadership vacuum after Jade Raymond’s departure has exacerbated development delays.

3. How does Sony’s live service strategy compare to its single-player focus?

Sony’s single-player titles—like God of War: Ragnarok and Marvel’s Spider-Man 2—have consistently outperformed its live service projects. These games rely on polished, story-driven experiences that align with player demand for “finshable” content. In contrast, live service games require ongoing investment, which many consumers view as excessive. Helldivers 2’s success proves that live services can work if they prioritize community engagement and avoid exploitative monetization.

4. What role does teamLFG play in Sony’s plans?

teamLFG is a high-stakes experiment for Sony, tasked with creating a genre-defying live service game. The studio’s pedigree includes developers from Destiny and Fortnite, but its unproven concept—a mix of MOBAs, platformers, and “frog-type” games—risks feeling disjointed. Analysts suggest the project must clarify its identity early to avoid the same pitfalls as Fairgame$ and Marathon.

Conclusion

Sony’s live service challenges are becoming increasingly difficult to ignore. From Destiny 2’s declining player numbers to the troubled development of Marathon and Fairgame$, the company’s $2 billion bet on this model faces mounting skepticism. While Helldivers 2 offers a blueprint for success, it remains an outlier in a portfolio marked by cancellations and delays. As Sony pushes forward with teamLFG and remaining projects, its ability to balance innovation with player expectations will be critical. For deeper insights into Destiny 2’s struggles, see Destiny 2 Edge of Fate Pre-order Plunge: 50% Drop Revealed.