_{Issue #46}

Rune: Gaming - When a Live Service Dies

_{Sept 22, 2024 • 12 minutes}

In a week that's sent shockwaves through the gaming industry, we're diving deep into the aftermath of some of recent gaming disasters and changes in recent memory. From sudden shutdowns to studio uncertainty and the end of long-running programs, this edition of Gaming Pulse unpacks the dramatic fallout from Sony's ill-fated Concord, the unexpected implosion at Annapurna Interactive, and the shuttering of the Xbox Ambassadors program. Buckle up, gamers - this is a rollercoaster you won't want to miss.

Gaming News

Concord's Crash: Game Director Steps Down as Studio Future Hangs in Balance

Just when we thought the Concord saga couldn't get any more dramatic, it's taken another unexpected turn. Following Sony's shocking decision to pull the plug on their live service hero shooter mere weeks after launch, the game's director has reportedly stepped down, leaving staff at Firewalk Studios in a state of anxious uncertainty.

Kotaku reports that Ryan Ellis, who had been steering the Concord ship as game director since January 2018, has told staff he's stepping back from the role and moving into a support function. Ellis' name was front and center on the PlayStation Blog post that announced Concord's untimely demise, where he acknowledged that while some aspects of the game resonated with players, others "didn't land the way we'd intended." Talk about an understatement.

The numbers paint a grim picture of just how badly Concord missed the mark. After years of costly development, the $40 PvP first-person shooter launched on August 23 for PC and PlayStation 5. But instead of the blockbuster success Sony was hoping for, Concord's sales were estimated at a paltry 25,000 copies, with its peak Steam concurrent player count barely registering a blip. The situation was so dire that Sony made the unprecedented move of removing Concord from sale just 11 days after launch, issuing refunds to the few who had taken the plunge.

For the 150-strong team at Firewalk Studios, which Sony acquired in 2023, the future looks decidedly uncertain. While Ellis has hinted at "exploring options" that could see Concord rise from the ashes in some form, many staff members are understandably skeptical.

According to Kotaku's report, the mood at Firewalk is a mix of speculation and fear. Some team members have been tasked with pitching ideas for new games, while others are wondering if they'll be reassigned to assist with other Sony projects. But hanging over everything is the specter of potential mass layoffs or even a complete studio shutdown.

Sony's Live Service Struggles

Concord's failure is just the latest blow in what's been a challenging year for Sony's gaming division. In February, the company announced a sweeping round of layoffs affecting 900 staff - about 8% of its global PlayStation workforce. The cuts hit several high-profile PlayStation studios, including Insomniac, Naughty Dog, Guerrilla, and Firesprite, with PlayStation's London studio facing complete closure.

The pain didn't stop there. Sony-owned Bungie, creators of Destiny, has also faced significant cuts as Destiny 2 struggles to find its footing in an increasingly competitive market.

These setbacks raise serious questions about Sony's ambitious live service plans. With projects like Bungie's Marathon and Haven's Fairgame$ still in the pipeline, the pressure is on to avoid another Concord-style disaster. It's worth noting that Sony president Hiroki Totoki had already scaled back expectations last year, committing to launch just six of the 12 live service games in development. A planned live service title based on The Last of Us has already been shelved

Annapurna Interactive's Mass Exodus: A Publisher in Crisis

Just when we thought the gaming industry couldn't get any more tumultuous, news broke of a shocking development at one of the most beloved indie game publishers. In early September, the entire staff of Annapurna Interactive - all 25 employees - walked out the door in a group resignation, leaving the industry stunned and developers scrambling.

The Lead-Up to the Walkout

The roots of this unprecedented event can be traced back to earlier this year. In March, Annapurna Interactive underwent significant leadership changes, with key figures like James Masi and Nathan Gary either being let go or leaving under unclear circumstances. This sparked initial resignations and confusion among staff.

While efforts were made to smooth things over, including discussions of spinning off Annapurna Interactive into a new company called Verset, tensions continued to simmer. The situation was further complicated by the quiet rehiring of former executive Hector Sanchez and a surprise partnership announcement with Remedy Entertainment that caught many Annapurna Interactive employees off guard.

The Aftermath

The mass resignation on September 6th left Annapurna's gaming division with just a skeleton crew, including newly-appointed president Hector Sanchez and chief strategy officer Paul Doyle. The company is now in a race against time to fulfill its obligations to numerous development partners and salvage ongoing projects.

Of particular concern is the fate of "Blade Runner 2033: Labyrinth," Annapurna's first in-house developed game. With the entire development team, including game director Chelsea Hash, among those who resigned, the future of this highly anticipated title is now uncertain.

Industry Implications

This upheaval at Annapurna Interactive sends shockwaves through the indie gaming scene. Known for publishing critically acclaimed titles like "Stray," "Outer Wilds," and "What Remains of Edith Finch," Annapurna's role in nurturing unique and innovative games cannot be overstated. The exodus of its entire staff raises questions about the future of indie game publishing and the stability of the industry as a whole.

Xbox Ambassadors Program Comes to an End After 13 Years

Microsoft has announced the closure of its Xbox Ambassadors program after 13 years of operation. The program, which aimed to foster a positive gaming environment through community engagement, will be phased out with the website shutting down on October 15, 2024.

Microsoft cites the evolution of the Xbox brand as the primary reason for the closure, stating that players are finding more value in other engagement platforms. The company plans to integrate learnings from the Ambassadors program into broader player engagement initiatives, including expanded Rewards with Xbox offerings and new ways for players to provide feedback.

The Road Ahead

As the dust settles on the Concord debacle, the Annapurna Interactive crisis, and the end of the Xbox Ambassadors program, the gaming industry finds itself at a crossroads. These events highlight the precarious nature of game development, publishing, and community engagement, even for well-established names.

For Sony, the challenge lies in reevaluating its live service strategy and finding a way to compete in an increasingly crowded market. For Annapurna, the immediate task is to rebuild trust with developers and ensure that ongoing projects don't fall by the wayside. Microsoft, meanwhile, must navigate the transition away from the Ambassadors program while maintaining strong community ties.

These events collectively highlight the industry's ongoing challenges:

1. The risks associated with live service games and the need for careful planning and execution
   

2. The delicate balance required in maintaining strong relationships between publishers, developers, and gaming communities
   

3. The evolving nature of player engagement and the need for companies to adapt their strategies

As we wrap up this edition of Gaming Pulse, we can't help but wonder: How will these changes shape the future of gaming? Will we see a shift in how companies approach community building and player engagement? What new initiatives might rise to fill the gaps left by programs like Xbox Ambassadors? And how will the industry adapt to the increasingly volatile landscape of game development and publishing?

Stay tuned, gamers - we'll be here to bring you all the latest as these stories continue to unfold in our ever-changing industry.

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