Following the reality check of live service, Playstation is reconsideration of the risk

Playstation Rethinking its strategy to risk after its latest reality check in the Live Service segment, a higher business official has said. Although the recently confirmed strategic change is multifaceted, it is largely centered by Sony changing how it handles Playstation Studios.

Launched at the end of August 2024 and permanently closed two weeks later, Firewalk Studios' Harmony is the most profiled failure of Sony's live service, which began under the leadership of former SIE CEO Jim Ryan. However, it is far from the only one, with previous reports that indicate that Playstation interrupted at least 11 live service games between 2022 and early 2025. While some of these projects are said to have been at an early stage of development and therefore did not cost much, several are believed to have been in the works for several years, consequently burning through significant means before they were protected. This was the case with The last of us onlinethat started as a multiplayer mode for 2020 The last of us 2 before being canceled at the end of 2023.

Sony Rethinking the PlayStation Studio Model

Before these setbacks, the group is reconsideration of the Playstation Studio model. It is according to Sony Interactive Entertainment Co-CEO Hermen Hulst, who said equally in a new interview with the Financial Times. “I don't want teams to always play it safely, but I would like us, when we fail, fail early and cheap,” the industry veteran explained.

Playstation Studios is now more cooperative

For this purpose, Playstation Studios is now subject to more frequent and various test procedures and is encouraged to share development inspections between teams, something they have not done consistently before. The goal, says Hulst, is to preserve creative independence at the same time as teams do not unconsciously duplicate efforts or rush their heads into costly mistakes. While each of Sony's 20 Playstation studios remains largely autonomous, the changes are focused on nurturing a stronger culture for internal coordination and shared liability.

From Concord to controlled growth

HarmonyFailure has become a precautionary story within Sony and reportedly the company costs as much as $ 400 million, a figure that includes the estimated costs of acquiring Firewalk Studios, which has since stopped. In a new Q&A session with investors, Hulst was adamant that Sony will not “make the same mistake again” Harmony. His latest comments on the Financial Times echoes that feeling.

I don't want teams to always play it safely, but I would like us, when we fail, fail early and cheap.

The new approach will result in reduced production, but should also minimize the risk. In the long term, Sony hopes that its first party's studios will start to contribute a larger proportion of the group's total revenue, which amounted to $ 31.7 billion during the financial year, which ended March 2025.