Sony has officially declared its massive £2.7 billion acquisition of Destiny 2 developer Bungie as financially disappointing, recording a substantial impairment loss as player engagement and sales continue to fall short of expectations.
The Financial Fallout
During a recent earnings call with investors, Sony's chief financial officer Lin Tao delivered sobering news about the 2022 acquisition. Tao confirmed that Destiny 2's "level of sales and user engagement have not reached the expectations we had at the time of the acquisition of Bungie."
The company has recorded an impairment loss of 31.5 billion yen (approximately £155 million) against a portion of Bungie's assets. This accounting move acknowledges that Sony paid significantly more for Bungie than its current valuation justifies.
Tao attributed the underperformance to "changes in the competitive environment" within the gaming industry while noting that efforts would be made to improve the situation. However, she bluntly stated that "we downwardly revised the business projection for the time being" regarding Bungie's future prospects.
Broader Implications for Bungie
The financial declaration comes during a challenging period for the renowned game developer. Hundreds of Bungie employees were laid off from the studio in recent months, and Destiny 2 has consistently made headlines for underperforming against commercial expectations.
This situation places immense pressure on Bungie to deliver with its upcoming projects, particularly the Marathon extraction shooter reboot. The live service game represents Bungie's attempt to revive its original sci-fi franchise that predates its famous Halo series.
However, Marathon has already encountered significant setbacks. Multiplayer playtests attracted widespread criticism, prompting Sony to delay the game's release from 2025 to before the end of March 2026.
Sony's Live Service Strategy Shifts
Sony's original acquisition of Bungie wasn't solely about Destiny 2. The Japanese conglomerate specifically sought Bungie's expertise in live service games, which represented a major strategic priority at the time of the purchase.
Since then, Sony has reportedly cancelled multiple live service games as its ambitious plans appear to be faltering. The strategy shift highlights the challenges even industry giants face in competing within the crowded live service market.
Amid the disappointing Bungie news, Tao did highlight one bright spot in Sony's portfolio: Helldivers 2. The successful live service title has performed "extremely well" according to Tao, particularly following its Xbox port earlier this year.
"Helldivers 2 is doing extremely well, not only attracting new users on Xbox, but also seeing increased engagement from existing users on PS5 and PC. This resulted in a significant increase in sales of the title year on year," Tao told investors.
The contrasting fortunes of Helldivers 2 and Bungie's offerings underscore the unpredictable nature of the gaming industry and the high stakes involved in major acquisitions.
