Another Live Service game has been canceled! Sony (SONY.US) has canceled two PlayStation projects.

Sony (SONY.US) announced on Thursday that it had canceled two top-secret games from its PlayStation division, one from Bend Studio in Oregon and the other from Bluepoint Games in Texas. Both were "Live Service" games, which are long-running online services that frequently update and offer seasonal content. A company spokesperson confirmed the cancellations. "After recent review, we have decided to cancel both titles, and PlayStation will continue to make online and single-player games," the spokesperson said in a statement. Neither studio will be closing, the spokesperson said. "Bend and Bluepoint are very successful teams and important members of the PlayStation Studios family, and we are working closely with each studio to determine the next project." In recent years, PlayStation has invested heavily in Live Service games, which are typically multiplayer games with microtransactions and other monetization methods that can generate revenue for years after their release. These games are risky investments, but if successful, they can be highly profitable. For Sony, this strategy has been successful with the 2024 release of "The Division 2," but there have also been several failures, including "Concord," which was pulled from sale less than two weeks after its release. The company reportedly canceled several other Live Service games in recent years, including a Spider-Man game. Sony did not reveal whether the cancellations would result in layoffs. In a memo to employees, the company said it was "working closely with Bend and Bluepoint to determine the next project and plan to do everything we can to minimize the impact on the business." The video game industry has struggled in recent years, with thousands of jobs lost due to misguided bets and slowing growth.