In early 2022, Sony made headlines by acquiring Bungie, the legendary studio behind Halo and Destiny, for a whopping $3.6 billion. At the time, the move was heralded as a bold step in Sony’s push into live-service gaming, arriving just as Destiny 2 was experiencing what many considered its best expansion yet. Fast forward to the end of Sony’s fiscal year 2025, and the picture looks dramatically different—one painted in shades of disappointment, uncertainty, and, most recently, a staggering $765 million impairment loss tied directly to Bungie’s performance.
The numbers are as stark as they are sobering. According to Sony’s full-year financial results, released on May 8, 2026, the company recorded a ¥120.1 billion ($765 million) impairment loss related to Bungie after its flagship titles, Destiny 2 and Marathon, failed to meet expectations. This impairment included a previously reported ¥31.5 billion ($204.2 million) charge in the second quarter, largely attributed to Destiny 2’s underperformance, and an additional ¥88.6 billion ($565 million) charge in the fourth quarter, which coincided with the launch of Marathon.
For context, impairment losses aren’t just a simple tally of how much money a company has lost. Rather, they reflect Sony’s recognition that Bungie is now worth significantly less than the $3.6 billion it paid just four years ago. As described by IGN, “Sony has admitted the acquisition has yet to pay off, resulting in these impairment charges.” The financial hit was so substantial it dragged down the operating income of Sony’s Games & Network Services segment by 41.6% in the fourth quarter, despite the segment’s otherwise flat sales and a 12% increase in operating income for the year as a whole.
So, what went wrong? Much of the trouble centers around Marathon, Bungie’s first new franchise in more than a decade, which launched on March 5, 2026. Despite a reported budget exceeding $250 million and a chorus of early praise—garnering a Metacritic score of 82 and more than 90% positive reviews on Steam—Marathon has struggled to gain traction. Two months after launch, the game has yet to break into the top-10 most played lists on PlayStation 5, Xbox Series X/S, or PC. On Steam, where most of its sales have occurred, it hovers between 10,000 and 15,000 concurrent players, a far cry from the heights once enjoyed by Destiny 2.
According to analysts cited by IGN, Marathon has failed to meet sales expectations, and the numbers bear this out. The game’s steep learning curve and hardcore design have been both a blessing and a curse. Bungie itself has acknowledged that “while Marathon has a steep learning curve, over time, recovering from a bad loss gets easier.” But the recent launch of the raid-like Cryo Archive experience doubled down on the game’s ultra-hardcore ethos, introducing several requirements that make it inaccessible to many casual players. Influential streamer Shroud summed up the dilemma during a recent broadcast, saying, “Cryo Archive is insane. It’s the most elaborate extraction shooter map I’ve ever seen in a game ever. The loop that they made is truly something special. The problem is, is it too elaborate? Is it too complex? Is it too much of a grind? Is your 9-5 grandma and grandpa going to be able to do it? I don’t know.”
Despite the glowing reviews and vocal fanbase, Marathon’s player base has steadily declined since launch. Sony, however, has publicly backed Bungie’s continued efforts to turn things around. In a statement cited by multiple outlets, Sony said, “Player reception to Marathon is strong, receiving a Metacritic score of 82 and more than 90% of the player reviews on Steam being positive. Engagement metrics such as retention also remain at a high level. Going forward, we aim to improve the performance of the game by working to retain highly engaged core users through the introduction of additional content, further improvements in the gameplay experience, and expansion of the user base.”
Yet, for all the optimism, the reality on the ground remains grim. Marathon is flirting with more casual-friendly modes in an effort to attract new players, but momentum has been hard to come by. Suggestions from the community include slashing the game’s $40 price tag or offering a free trial weekend—both moves that Sony has yet to commit to, perhaps wary of alienating those who already bought in at full price.
The situation is further complicated by the state of Destiny 2, which is currently experiencing its lowest concurrent player count ever on Steam and is in the midst of its longest content drought since launch. Bungie has shifted much of its development resources from Destiny 2 to Marathon, but neither title is flourishing. Notably, Destiny 2 was not mentioned at all in Sony’s most recent financial report, leaving fans to speculate about the franchise’s future. Hopes for a potential Destiny 3 announcement remain, but there are no concrete signs that such a project is imminent.
Behind the scenes, Bungie has endured multiple rounds of mass layoffs since the Sony acquisition, and longtime CEO Pete Parsons has been replaced. With high overhead costs and two underperforming live-service games, fans and analysts alike are bracing for the possibility of further cuts. As Forbes observed, “There’s nothing to guarantee a lack of poor outcomes for Bungie, including layoffs to reduce costs, which in turn would mean less investment in these games, which would likely mean fewer players, a spiral we’ve already seen with Destiny.”
Despite these challenges, Sony insists it remains committed to Bungie and Marathon. During an investor Q&A, Sony CFO Lin Tao stated, “In our studio business, earnings from Bungie’s title portfolio did not reach our expectations, so we downwardly revised our business plan and impaired the full amount of the fixed assets related to Bungie except for goodwill.” Sony expects impairment losses to be absent or significantly reduced in fiscal year 2026, offering a glimmer of hope that the worst may be over.
Elsewhere, Sony’s broader Games & Network Services segment saw net sales of ¥4.7 trillion ($29.9 billion), up slightly year-over-year, with operating income reaching a record high thanks to strong software and network services sales. However, PlayStation 5 hardware revenue and unit sales declined, with 16 million units sold in fiscal year 2025 compared to 18.5 million the previous year. Looking ahead, Sony forecasts a 6% decrease in segment revenue for fiscal year 2026 but anticipates a 30% increase in operating income, banking on continued growth in software and network services—and perhaps a turnaround for Bungie.
For now, Bungie’s future remains uncertain. Marathon isn’t a total disaster, but it’s a far cry from the blockbuster hit Sony had hoped for. The coming months will be crucial as the studio seeks to regain its footing and justify Sony’s multibillion-dollar bet. Whether that means reimagining Marathon, reviving Destiny, or charting an entirely new course, one thing is clear: the pressure is on.