Bend Studio, the developer behind the Days Gone franchise, is facing significant restructuring after reports emerged of substantial staff layoffs. According to a report from Bloomberg’s Jason Schreier, the Oregon-based studio has laid off approximately 30 percent of its workforce—around 40 employees—as it pivots to a new project in the wake of the cancellation of its live-service game earlier this year.
This development arrives amid broader turbulence in Sony Interactive Entertainment’s live-service game ambitions. Initially heralded as a cornerstone of the company’s future portfolio, the live-service strategy was formally outlined in 2022 by then-president Jim Ryan. Sony planned to release 12 live-service titles by 2025 to diversify its lineup and capitalize on the growing games-as-a-service market. However, this initiative has now faltered considerably, with eight of these projects officially canceled as of this year.
Bend Studio’s unannounced live-service title is among the latest casualties of this pivot. It joins a list that includes high-profile cancellations such as Naughty Dog’s The Last of Us Factions, Insomniac’s Spider-Man: The Great Web, and Bluepoint’s rumored God of War multiplayer experience. These cancellations follow reports of internal concerns over market demand, development risks, and shifting player preferences favoring traditional single-player narratives—an area where Sony has historically thrived.
Of the original 12 titles planned under the live-service banner, only four remain in active development. Arrowhead Game Studios’ Helldivers 2, released in February 2024, stands as the sole commercial success among them. It has reportedly amassed over 15 million players globally, an increase of three million since May 2024. Meanwhile, Bungie’s Marathon, Haven Studios’ Fairgames, and Guerrilla Games’ Horizon Online are still undergoing development and internal playtesting.
The live-service initiative’s failure has sparked scrutiny of Sony’s strategic direction. A 2023 consumer survey showed most PlayStation users still favor single-player experiences over live-service games, further challenging the wisdom of Sony’s GAAS-focused shift for its core audience.
Bend Studio now faces an unclear path forward. While reports indicate the team is gearing up for a new project, specifics remain unknown. The extent of the layoffs suggests this upcoming title may represent a significant departure, in either scale or creative vision, from the abandoned live-service game. The studio’s next move will be telling as Sony reevaluates its approach to balancing single-player and service-based offerings.
