Following a recent evaluation of its live-service endeavors, PlayStation is rethinking its risk approach. According to a senior executive, this strategic shift is largely focused on how Sony manages its brand of studios.

Concord, a game launched in August 2024 and shut down just weeks later, marks a significant misstep for PlayStation. Reports indicate that at least 11 live-service projects were canceled between 2022 and early 2025. Some of these projects had significant development timelines and costs associated with them, such as The Last of Us Online, which was abandoned in late 2023.

A New Studio Model

In response to these failures, the studio model is set to change, as per Hermen Hulst, co-CEO of Sony Interactive Entertainment, who emphasized in a recent interview with the Financial Times that PlayStation studios will undergo varied testing and be encouraged to share insights. The aim is to balance creative freedom with shared learning to avoid redundant efforts and significant financial waste.

Implications of Concord’s Failure

The fallout from Concord’s failure reportedly cost Sony as much as $400 million, including operational costs of Firewalk Studios, which has been closed since. Hulst has promised shareholders that Sony aims to learn from these mistakes moving forward. While production may decrease, the intent is to lower overall risk and boost revenue from first-party studios, which reported $31.7 billion in revenue for the fiscal year ending March 2025.