After years of console domination, we’re starting to see cracks in the PlayStation brand as it attempts to achieve live-service supremacy. A clear indication of this shift is the high-profile failure of ‘Concord’ and the closing of Firewalk Studio.
This week, PlayStation announced it would close Firewalk Studio, a developer founded in 2018 that Sony acquired just last year. The acquisition and subsequent closure stem from the failure of ‘Concord’, a live-service PvP hero shooter released on both PS5 and PC, developed by creatives known for their work on popular titles like ‘Destiny’ and ‘Call of Duty.’
To put it bluntly, ‘Concord’ failed to resonate with players. According to SteamDB data, player counts never exceeded 1,000, and estimated sales figures across both PS5 and Steam were dismal. Initially, I outlined the reasons for ‘Concord’s lackluster performance, including its lengthy eight-year development cycle that caused it to miss out on the hero shooter trend initiated by ‘Team Fortress 2’ in 2007 and reaching its peak with ‘Overwatch’ in 2016:
“Knowing the cost and development time required for AAA online games, studios have to assess, predict and/or simply guess what will be the next big hit. What games will succeed in four, five, or six years’ time? Will the audience still care for that kind of game by the time we are ready to launch it? It practically requires the services of a fortune-teller to get the answer right.”
Essentially, starting development on a game based on current trends is likely too late.
This fundamental miscalculation was further complicated by ‘Concord’s’ excessive development costs. The substantial budget for PlayStation’s characteristic high-quality visuals and extensive cinematic cutscenes meant that while competitors offered their titles for free, Sony opted to charge $40. Coupled with low consumer awareness and numerous high-quality free alternatives, ‘Concord’s’ pricing proved to be a significant—and ultimately fatal—drawback.
Content-wise, it’s difficult to argue that ‘Concord’ was fully realized at launch. The character kits felt disjointed, the systems—described by Firewalk as a blend of fighting and card game elements—were largely unclear, and the map designs left much to be desired. Although some critics argue that the characters contributed to the game’s failure, this perspective is hard to sustain in light of Valve’s own Hero shooter, ‘Deadlock,’ which launched around the same time with considerable acclaim despite lacking a finalized character roster, all while being free-to-play.
Ultimately, ‘Concord’ represents a significant blemish on the PlayStation brand, not merely due to its commercial failure. Sony’s management of the situation has been disastrous. It’s one thing to release a subpar product, but removing ‘Concord’ from stores and player accounts merely weeks post-launch, followed by the closure of the studio, reflects desperate decisions by a company uncertain of its trajectory.
Such failures and subsequent fallout are unfamiliar territory for modern Sony. Since the launch of the PlayStation 4, the gaming brand has enjoyed remarkable success with numerous critically acclaimed releases, eclipsing its competition. While Nintendo has opted out of the console wars, sticking to being a complementary choice for many gamers, Xbox has focused on rebuilding its position as a credible competitor. Meanwhile, Sony’s standout single-player titles—like ‘God of War’, ‘Ghost of Tsushima’, ‘Spider-Man’, and ‘The Last of Us’—have amassed awards and sales. However, the gaming landscape has evolved. Industry analysts assert that although many gamers still prefer single-player games, in 2023, 80% of game time was dedicated to just 66 titles, most of which are online games such as ‘Fortnite’, ‘Minecraft’, ‘Call of Duty’, and ‘League of Legends’. Live-service titles are the focal point for both engagement and revenue.
It’s evident why Sony is pursuing an aggressive live-service strategy; it extends beyond potential profit margins. PlayStation’s first-party teams like Naughty Dog and Insomniac often spend close to five years developing AAA single-player games. Consequently, by introducing several live-service titles, Sony can create a robust release calendar that seamlessly alternates single-player releases with live-service content.
In light of this, Sony’s acquisition of ‘Destiny 2’ developer Bungie in 2022 highlighted its commitment to the live-service arena. At the time, Sony projected having 10 live-service games operational by the end of the 2025 fiscal year. However, acknowledging the obstacles in achieving this target, Sony lowered its expectations to six. With the closure of ‘Concord’ alongside several rounds of layoffs at Bungie, it is evident that PlayStation’s journey into live-services has had a bumpy start. So, what steps should Sony take moving forward?
To begin with, it’s vital to grasp the current status and Sony’s position concerning its live-service ambitions. The company has cancelled multiple online gaming projects, some confirmed, others surfacing via rumors. Among them are Naughty Dog’s ‘The Last of Us PvP project,’ an online ‘Spider-Man’ game, ‘Twisted Metal as a live-service title,’ and ‘Payback,’ a third-person ‘Destiny’ spinoff.
Among the projects still rumored to be in development are Bungie’s ‘Marathon’ (which has recently received a positive developer update and appears secure for now) and two potential ‘Horizon’ titles—one focused on cooperative play and the other an MMO. In 2023, Sony also acquired Haven Studios, led by former Ubisoft veteran Jade Raymond, who is expected to contribute to its live-service portfolio. Although Haven was brought on board for its AAA PvP project ‘Fairgames,’ it also played a role in developing ‘Concord’ prior to its closure.
Currently, Sony’s most successful entry into the live-service genre comes not from a studio under its ownership. ‘Helldivers 2,’ developed by Arrowhead Studio, has enjoyed massive success and may bear the PlayStation Studios logo, but it’s solely published by Sony. Despite its triumphant launch, the recent updates for ‘Helldivers’ have received mixed responses from the gaming community, illustrating the long-term hurdles facing PlayStation in the live-service domain.
The overall strategy is unclear at best. Both ‘The Last of Us’ and ‘Spider-Man’ have proven to be immensely popular titles, yet neglecting to explore a multiplayer aspect, especially when the focus has shifted towards live services this generation, seems like a lost opportunity. Additionally, charging $40 for a game from a new studio amidst a market saturated with premium, free-to-play options represents a colossal risk, unless Sony somehow believes that its brand alone can buoy a game from an inexperienced studio. And the swift closure of Firewalk Studio, without giving ‘Concord’ a reasonable period for adaptation post-launch, raises questions about Sony’s commitment to supporting new developers.
In its official communications, Sony stated it would “learn from ‘Concord’ and enhance its live-service capabilities for future growth.” However, given the multitude of issues surrounding ‘Concord,’ the company might benefit from reevaluating its approach and considering the opposite strategies.
Perhaps Sony should refrain from assuming that the strength of the PlayStation name alone can sustain a game in a cluttered market. If a live-service game fails to meet its targets shortly after launch, avoiding the immediate removal from stores could be wise. Furthermore, for prospective developers looking to join the PlayStation family, ensuring them that they won’t face closure after one lackluster release would be a beneficial reassurance.
Call to Action
We invite our readers to join the conversation. What do you think are the implications of Sony’s recent decisions regarding live-service games? Do you believe they should shift their strategy moving forward? Share your thoughts in the comments below!
Live-service titles should be developed based on established franchises, incorporating multiplayer elements or cooperative gameplay to extend the engagement of their audiences.
Sony must also learn from the mistakes made with ‘Concord’ and adopt a more thoughtful approach to game development. Initial concept viability, market readiness, and player engagement should be priorities during the planning phase of any project. Engaging accurately with community feedback and analyzing competitor offerings will provide insights into what gamers truly desire.
Furthermore, collaboration between its various studios could yield innovative concepts that blend single-player experiences with live-service models. For example, having mechanics from ‘God of War’ integrated into a multiplayer framework could create something unique and compelling for both current fans and potential newcomers.
As Sony navigates its growth into the live-service model, it should continue to produce high-quality single-player experiences while gradually phase in multiplayer features to build an expansive ecosystem that meets evolving gaming trends. This balance could help Sony maintain its competitive edge and secure a stable revenue stream in a market increasingly dominated by live-service titles.