PlayStation’s Live Service Struggles Highlight Xbox’s Unmatched Dominance

Originally, PlayStation intended to run at least twelve exclusive live-service games by the year 2026, with the earnings from these games accounting for more than half of Sony Interactive Entertainment’s total income.

Indeed, it makes sense that Sony, in 2022, would focus on strengthening and investing in the multiplayer aspect of its games. This is because a large portion of their titles are single-player games that have high upfront costs but don’t consistently generate revenue over time, so bolstering the multiplayer side could help address this issue.

The company already operated some ongoing game franchises like Polyphony Digital’s Gran Turismo racing series and San Diego Studio’s MLB games. However, its ambition was not limited to these; it aimed to extend far beyond them. This expansion plan even included welcoming Bungie as a multi-platform developer, and making PlayStation Studios live service games available on Windows PC from their release day.

Over time, it’s become evidently obvious that this plan won’t come to fruition. A series of studio closures and game cancellations have significantly derailed this endeavor, causing much speculation about its remaining components. To provide some context, let me briefly summarize every live service project from PlayStation and their recent developments:

1. Destiny 2 – Initially exclusive to PlayStation, but later available on other platforms as well.
2. The Division 2 – Developed by Massive Entertainment, it’s a multiplatform game.
3. Days Gone – Originally pitched as a live service game, but eventually released as a single-player title in April 2019.
4. Dreams – A unique creation and sharing platform that was initially planned for a PS4 release, but later expanded to PC as well.
5. MLB The Show – Exclusive to PlayStation, with an annual release cycle.
6. No Man’s Sky – Initially released in 2016 on PS4, it has since been updated and is now available on multiple platforms.
7. Warframe – Originally launched as a PC exclusive, but later released on PlayStation in 2013. It continues to receive updates and support.

  • Arrowhead Game Studios – Helldivers 2 – Released
  • Bend Studio’s game – Canceled
  • Bluepoint Games’ God of War – Canceled
  • Bungie’s Marathon – In development
  • Deviation’s game – Canceled, studio closed*
  • Firewalk Studios’ Concord – Released, un-released, studio closed
  • Firesprite’s (reported) Twisted Metal reboot – Canceled
  • Guerrilla Games’ Horizon co-op game – in development
  • NCSoft Horizon MMO – Canceled
  • Haven’s Fairgame$ – In development
  • London Studio’s fantasy game – Canceled, studio closed
  • Naughty Dog’s The Last of Us Online – Canceled
  • Neon Koi’s mobile action game – Canceled, studio closed
  • Unannounced studio’s (reported) Gummy Bears – In development

    *PlayStation hired Jason Blundell, one of Deviation’s founders, at a new unannounced studio, so it’s possible this project still exists in some form.

Things haven’t run quite as smoothly as planned, with at least eight games being called off, including an unannounced one called Concord. The frequent cancellations point to a significant issue that appears to have reached its zenith with the recent revelation that Bend Studio, creators of the single-player open-world game Days Gone, and Bluepoint Games, renowned for their work on remakes like Shadow of the Colossus and Demon’s Souls, were both developing live service games, including a live service God of War title, which have now been scrapped.

Among all the undertakings, it’s clear that Helldivers 2 stands out as a highlight. This was a game I was excited about and had high hopes for before its release, but it surpassed my expectations. With a unique blend of captivating gameplay mechanics that intertwine in unpredictable ways, Helldivers 2 skyrocketed in popularity. As of May 2024, it has sold more than 12 million copies.

The challenge of penetrating the live service market is made harder by Microsoft’s persistent investments in this area, including high-profile acquisitions like Activision Blizzard King, and their growing openness to distribute Xbox games across various platforms. For instance, Call of Duty was always expected to be multiplatform, but with Rare’s Sea of Thieves now available on PlayStation and more games set to follow, it appears that the realm of service games is becoming increasingly competitive. There are whispers that even popular Xbox franchises like Halo and Forza might join this trend, potentially engaging Sony in a battle on their own turf, such as in the genres of shooters (like Gran Turismo).

On the platform of PlayStation, sales from Xbox games and associated microtransactions generate revenue, but as more games become available, the cumulative amount could potentially pose a challenge. This is because players might prefer playing Xbox games over new releases from PlayStation. The deeper these Xbox games penetrate various markets, the tougher it will be to lure audiences towards other offerings. Microsoft is rumored to be developing a cross-platform social interface for all its games, resembling what’s already found in titles like Call of Duty and Diablo 4 via Battle.net and Activision’s proprietary systems. If this centralized Xbox-branded system were to replace existing ones, it could prove a subtle but significant threat to PlayStation, as some of its top games are actually owned by Microsoft.

A path forward to success

Even though many PlayStation live service games have ceased operation, it doesn’t imply that all hope is lost or there’s no future direction. The ones that continue to be developed appear to hold a great deal of promising possibilities.

I find myself eager to learn more about Bungie’s Marathon reboot, which is rumored for release on Xbox as well. It’s been quite a while since the studio has released something outside of Destiny, and the visual style hinted at in the trailer is truly captivating. I can only hope we’ll be getting more details about it soon.

I’m eager to check out how Guerrilla and Horizon’s multiplayer modes are shaping up. The idea of battling colossal robot dinosaurs together sounds exciting, and with the recent success of Monster Hunter games, it could be even more captivating. If the experience of taking down machinery as a team proves to be enjoyable and dynamic, I have high hopes that Guerrilla will achieve great success. Interestingly enough, another Horizon multiplayer project from NCSoft was recently canceled, which underscores the challenges Sony faces in this area.

Continuous games and subscription services are effective methods for reducing financial risks and maintaining stability in a currently unpredictable gaming market. For instance, Sony benefits significantly from being the top console platform for games such as Fortnite, Minecraft (owned by Microsoft), and Call of Duty. However, having your own service-based games can also help minimize reliance on other companies. Relying excessively on external providers can be risky, as Microsoft has discovered multiple times. This is one of the main reasons they spent an unprecedented $72 billion to acquire Activision-Blizzard. Unfortunately, Sony doesn’t have that kind of money available… so, developing more self-created innovations like Helldivers 2 would be beneficial. But after the Concord incident, will Sony still be willing to take on such risks?

This is one area that, at least for now, Microsoft has a clear advantage.

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2025-01-21 17:10