The ongoing saga of layoffs and studio closures in 2023 has been bad for developers of all shapes and sizes. But one notable surprise has been the dramatic impact they've had on companies behind live service games—and not just poor-performing ones, but successful ones like Fortnite and Destiny 2.
A slew of live service games have also been reportedly canceled or delayed by some of these developers. When you take a look at the whole picture, it paints a portrait of sudden declines for a business model that seemed foolproof for the last decade.
It would be wise for developers to not look upon these struggles as the "demise" of live service titles. Fortnite, League of Legends, and Counter-Strike 2 aren't going anywhere. The world of mobile games will still be dominated by free-to-play juggernauts like Call of Duty Mobile, and Clash of Clans.
But there is something in the air. Perhaps the largest signifier that something is amiss is PlayStation 5 developer Sony loudly announcing its intent to dive into the world of live service games, and now it's the one delaying troubled projects. Some live service games launched in 2023 have shut down within as little as two months.
The implications of a live service slowdown are not insignificant. Live service titles employ a large chunk of our industry, and can employ teams of developers from all skillsets. They drive massive profits for publishers and at some companies, they can be the financial bulwark that allows other teams to futz with experimental projects.
So what—beyond the general trends driving layoffs and closures this year—is plaguing this particular market?
We can't point to any one reason that live service games are having such a bad year, especially since some of the
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