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I'm not really sure how live service games failing is any different to any other type of game failing. Not everything is going to sell well or have high engagement, regardless of whether it's a SP only game or a live service one.

live service titles are just harder to crack because you've got to keep engagement, while juggling development costs vs. player base. But at the end of day, it's not that much different from more traditional games failing to find success, like Tomb Raider or Calypso Protocol.

I don't think this ends publishers looking at this model. But publishers are definitely going to need to examine why their titles didn't work.