Sony’s foray into live-service gaming has hit a significant roadblock with the abrupt closure of Concord, a multiplayer shooter launched in August 2023, only to be pulled just 11 days later due to disappointing sales. This setback has sent shockwaves through the gaming industry, forcing Sony to confront its own limitations and re-evaluate its strategies for this rapidly evolving market.
During a recent earnings call, Sony’s leadership candidly acknowledged the challenges they faced with Concord. Hiroki Totoki, Sony’s President, COO, and CFO, highlighted the company’s relative inexperience with live-service games, a sector characterized by constant updates, community engagement, and a heavy reliance on player retention. Totoki emphasized that internal reviews have already identified key areas for improvement.
One of the critical takeaways from Concord’s failure is the need for more robust internal testing and evaluation before a game’s launch. Totoki stressed the importance of setting multiple checkpoints to ensure a product’s readiness. “We probably need to have a lot of gates, including user testing or internal evaluation, and the timing of such gates. And then we need to bring them forward, and we should have done those gates much earlier than we did,” he explained.
Sony also recognized that its organizational structure, described as “siloed,” hampered collaboration between development and sales teams. Breaking down these barriers could lead to smoother game launches and better alignment with marketing strategies. The company acknowledged that its previous approach to Concord, a new intellectual property developed by Firewalk Studios, fell short in this regard.
The timing of a live-service game launch is equally crucial. Totoki stressed the importance of carefully selecting release windows, not only to avoid cannibalization within Sony’s portfolio but also to maximize a title’s chances of success in a crowded market. This highlights the need for a more strategic approach to game launches, taking into account competitive landscapes, player expectations, and the potential for overlapping releases.
Following Concord’s short-lived journey, Sony took steps to mitigate the situation by offering players full refunds and announcing the closure of Firewalk Studios. While this move served as a public acknowledgement of the game’s failure, it also underlines the significant financial and reputational impact of a failed live-service venture.
However, Sony’s leadership emphasized that the company views this experience as an opportunity for growth. Sadahiko Hayakawa, Senior Vice President of Finance and Investor Relations, highlighted the contrast between Concord and Helldivers 2, another live-service game launched in 2023, which he described as a “huge hit.” Both launches provided invaluable lessons for Sony, shedding light on the complexities of managing live-service games and the need for more refined development strategies.
Hayakawa stated, “We intend to share the lessons learned from our successes and failures across our studios, including in the areas of title development management as well as the process of continually adding expanded content and scaling the service after its release so as to strengthen our development management system.”
Despite the challenges presented by Concord, Sony remains committed to its live-service ambitions. The company has set an ambitious goal to launch six live-service titles by March 2026. To balance its portfolio and mitigate risks, Sony plans to leverage its strengths in single-player games, which are typically more predictable hits due to established IPs. These titles will complement the company’s live-service ventures, which, while involving greater risks, offer potentially lucrative returns if successful.
Hayakawa summed up Sony’s strategy, saying, “We aim to develop an optimum title portfolio during the current mid-range plan period that combines single-player games – which are our strengths and which have a higher predictability of becoming hits due to our proven IP – with live-service games that pursue upside while taking on a certain amount of risk upon release.”
Sony’s experience with Concord serves as a cautionary tale for the gaming industry, highlighting the challenges and intricacies of the live-service model. While the company is determined to learn from its mistakes and continue its foray into this lucrative sector, the road ahead promises to be challenging. The success of Sony’s future live-service titles will hinge on its ability to adapt, refine its strategies, and prioritize player engagement and community building.
