Sony CFO: Destiny 2 Underperforms After $3.6B Bungie Deal
▼ Summary
– Sony recorded profit losses in its games segment due to impairment losses on Bungie’s assets related to Destiny 2’s underperformance.
– Destiny 2’s sales and user engagement have fallen short of Sony’s expectations post-acquisition, partly due to competitive environment changes.
– Sony has downwardly revised its business projections for Destiny 2 and will continue making improvements to the game.
– Live-service games overall contributed over 40% of Sony’s first-party software revenue, with successes like Helldivers 2 and MLB: The Show 25.
– The PS5 has reached 84.2 million shipments, and Ghost of Yotei sold over 3.3 million units in its first month.
Sony’s high-profile acquisition of Bungie for $3.6 billion has encountered significant headwinds, with the flagship title Destiny 2 failing to meet financial and engagement targets. The company’s latest earnings report reveals substantial impairment losses tied directly to Bungie’s intangible assets, reflecting the game’s underperformance in a shifting market landscape.
During an investor question-and-answer session, Sony Chief Financial Officer Lin Tao provided a candid assessment of the situation. She explained that Destiny 2’s sales figures and player activity levels have fallen short of the projections established when the acquisition was finalized. Tao attributed this shortfall in part to changes in the competitive environment, a likely reference to the crowded live-service gaming sector.
In response to these challenges, Sony has taken decisive financial action. The company has downwardly revised its immediate business forecast for the title and officially recorded an impairment loss against a portion of Bungie’s assets. This accounting move acknowledges that the value of these acquired assets is now lower than their original purchase price on Sony’s books.
Despite the difficulties with Destiny 2, Sony’s broader live-service strategy shows promising signs. Tao highlighted that this category, which includes major hits like Helldivers 2 and MLB: The Show 25, collectively represents more than 40 percent of first-party software revenue. The success of these titles, including their performance on competing platforms like Xbox, demonstrates the potential upside of Sony’s live-service investments when they resonate with players.
The news comes amid a notable decline in Destiny 2’s active player base in recent months, leading to industry speculation about the game’s long-term viability. This situation underscores the immense difficulty and financial risk involved in creating and maintaining a successful live-service game, a challenge that even industry giants struggle to solve consistently.
In other positive news from the earnings release, Sony confirmed that PlayStation 5 console shipments have surpassed 84.2 million units globally. Furthermore, the recently released Ghost of Yotei achieved an impressive commercial debut, selling over 3.3 million copies within its first month of availability.
(Source: EuroGamer)
