The Last of Us Online Was 80% Finished When It Was Canceled - Inside Games Daily
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The canceled Last of Us online live service game was reportedly 80% complete when Sony PlayStation abruptly shut it down in late 2023, according to former director Vinit Agarwal, who spent seven years developing it. Agarwal revealed the game's cancellation came amid a post-COVID industry downturn, as Sony scaled back massive investments made during the pandemic's peak. Despite the project's advanced state, Naughty Dog was forced to choose between the online game and Neil Druckmann’s next single-player title, Intergalactic, ultimately prioritizing the latter. Agarwal’s personal experiences—being mugged twice in Austin and New York—served as the emotional core of the game’s design, aiming to explore the dehumanization of desperation. The cancellation devastated him, leading him to move to Japan to start his own studio, blending Western collaborative design with Japan’s hierarchical, vision-driven approach. The episode critiques Sony’s mismanagement, highlighting how short-term spending surges led to unsustainable projects, many of which were canceled before release, including Concord and Foam Stars. While Helldivers proved a rare success, the overall live service market appears saturated, and the financial logic behind pre-release cancellations—such as tax write-downs—raises ethical concerns. The episode ends on a bittersweet note, mourning lost creative labor while acknowledging the industry’s harsh realities.
The Last of Us Online was 80% complete at cancellation, with seven years of development and significant investment.
Sony’s post-COVID spending cuts forced Naughty Dog to prioritize Druckmann’s single-player project over the live service game.
Personal trauma from real-life muggings inspired the game’s core theme of desperation and dehumanization.
Pre-release cancellations may serve as financial write-downs to reduce reported spending and improve tax positions.
The live service market is now saturated, making it difficult for new entries to succeed even with strong development.
…and 2 more takeaways available in PodZeus
The Last of Us Online Was 80% Complete at Cancellation
“The canceled Last of Us live service game was around 80% complete, according to the project's former director.”
Seven Years of Work, Overnight Canceled
Former director Vinit Agarwal shares his devastation after investing seven years into the project, learning of the cancellation just 24 hours before the public.
From Real-Life Muggings to Game Design
“He wanted people to have the feeling of being on both sides of this. Not necessarily maybe being a tourist with a please rob me sign on your back, but more what he describes as the dehumanization of desperation.”
The Business Collapse Behind the Cancellation
The episode dissects how post-COVID revenue declines forced Sony to cut spending, leading to a cascade of cancellations, including The Last of Us Online, despite its near-completion.
The Fallout: Lost Jobs, Lost Games, and Tax Write-Downs
“If Sony releases Concord and then within a certain amount of time their accountants can be like, if it's only out for two weeks, this does not count as a game release. Then the government has to give us our money back.”
“If Sony releases Concord and then within a certain amount of time their accountants can be like, if it's only out for two weeks, this does not count as a game release. Then the government has to give us our money back.”
“He wanted people to have the feeling of being on both sides of this. Not necessarily maybe being a tourist with a please rob me sign on your back, but more what he describes as the dehumanization of desperation.”
“The canceled Last of Us live service game was around 80% complete, according to the project's former director.”
Hosts
Guest
The Last of Us Online
media
Sony PlayStation
organization
Vinit Agarwal
person
Naughty Dog
organization
COVID-19 Pandemic
other
Helldivers
media
Neil Druckmann
person
Concord
media
Japan
place
Intergalactic
media
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