Details Emerge on Cancellation of The Last of Us Online

A former Naughty Dog director has provided new details on the 2023 cancellation of The Last of Us Online, a multiplayer spinoff project. The account coincides with a period of strategic reassessment for Sony's live-service gaming initiatives, which has included project cancellations and studio closures across the industry.

Development and Cancellation of The Last of Us Online

In an interview, former Naughty Dog Game Director Vinit Agarwal stated the multiplayer project was approximately 80 percent complete when it was canceled in late 2023. Agarwal described learning of the cancellation 24 hours before a public announcement was made, following seven years of development work.

According to Agarwal, a decision was made during development between continuing the multiplayer spinoff or focusing resources on the next major single-player title, which was being directed by company president Neil Druckmann. The studio opted to prioritize the latter project.

Sony's Live-Service Strategy and Internal Shifts

Agarwal's account references a broader strategic push by Sony for live-service games, which he indicated began around 2020. This timing coincided with increased demand for multiplayer experiences during the COVID-19 pandemic. Investment in this strategy was later reduced as global conditions changed.

This aligns with a 2022 communication to investors in which Sony outlined plans for significant investment in live-service games, with a goal of having at least 10 such titles online by 2026. However, in 2023, prior to the cancellation of The Last of Us Online, Sony internally delayed six live-service games. During this period, its subsidiary Bungie also implemented staff layoffs.

Recent Challenges and Project Cancellations at Sony

Sony's live-service initiatives have faced further challenges in 2024 and 2025:

• The company initiated a reduction of approximately 900 jobs.
• The sci-fi shooter Concord was shut down two weeks after its late August 2024 launch, leading to the closure of its developer, Firewalk Studios, and fellow subsidiary Neon Koi.
• Two unannounced live-service titles in development at first-party studios Bluepoint Games and Bend Studio were canceled. Reports indicate the cancellation at Bend Studio resulted in contractor layoffs.
• Sony has since closed Bluepoint Games. The company's current focus includes Marathon, a title from Bungie.

Industry-Wide Context

Difficulties with live-service games have extended beyond Sony:

• Warner Bros. Games ceased support for Multiversus in January 2024.
• Wargaming discontinued Steel Hunters after three months.
• The title Highguard was shut down shortly after its launch.
• Epic Games, the maker of Fortnite, conducted layoffs involving over 1,000 employees.

Despite these market conditions, some companies, such as Sega, have continued to express interest in the games-as-a-service model.