In January 2022, Sony announced the acquisition of Bungie, the studio behind Destiny 2, for $3.6 billion. The deal closed in July 2022. Sony's strategy was to acquire a proven live-service game studio that could compete with titles like Fortnite and Call of Duty, and Bungie was promised operational independence within the Sony structure.
The bet soured quickly. Destiny 2 revenue fell 45% year-over-year by October 2023. Subsequent expansions failed to reverse the trend, and the July 2025 Edge of Fate expansion recorded the lowest Steam player count of any Destiny 2 expansion. A new title, Marathon, was delayed and failed to meet sales and engagement expectations at release.
Sony took a $204.2 million impairment in November 2025 and a $765 million impairment for the fiscal year ending March 31, 2026. Bungie underwent three rounds of layoffs: roughly 100 in October 2023, 220 in July 2024, and nearly 300 in June 2026. CEO Pete Parsons departed in August 2025. Sony shifted Bungie from an independent subsidiary into PlayStation Studios. In May 2026, Bungie announced the June 2026 update would be the final live-service content for Destiny 2.
Sony wrote off $765M as Destiny faded and Marathon flopped, after paying $3.6B for a studio whose flagship was already declining.
Sony overpaid for a studio whose flagship franchise was already in decline, paying $3.6B based on past success rather than future trajectory.
Bungie failed to deliver new hits: Marathon was delayed and underperformed, and Destiny 2 expansions increasingly lost players, leaving the studio with no growth engine.
Sony allowed Bungie to operate independently without integration oversight, and by the time it stepped in, the studio had burned through three years and hundreds of millions in development costs.
Buying a live-service game studio is buying a franchise at its peak, not buying a business. When the players leave, there is nothing left to sell.
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