There's no reason for Sony to stop developing live service games. 40% of their first party revenue came from live service games last FY.
Maybe not as many at once like Jim Ryan envisioned. But when you have new staples in Helldivers 2 and potentially Marvel Tokon, with games like MLB The Show and GT7 being longstanding franchises that print money, its not entirely as disastrous as some are painting. Marathon underperformed but the game itself has good reviews. The same thing could be said for Saros. Even Sons of Sparta, a type of game that a lot of the fanbase wants Sony to do, reviewed really poorly and "stains" the franchise from its high critical standards.
The discourse for live service, especially when it comes to Sony, unfortunately will not be viewed from a rational POV from the majority of users that discuss it. You have people rooting for them to fail, celebrating when they do, then blame Sony for it and try to be sympathetic about people losing their jobs.
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