Sony has officially confirmed that Bungie will be fully integrated into PlayStation Studios, marking the end of the independence the developer was promised following its $3.6 billion acquisition in 2022. The announcement came during a recent investor relations Q&A where Sony management addressed the changing relationship with the Destiny developer.
“About the governance of Bungie, at the time of acquisition we were offering a very independent environment,” Sony executives explained. “However, thereafter, we have gone through structural reform, so this independence is getting lighter, and Bungie is shifting into a role which is becoming more part of PlayStation Studios, and integration is proceeding.”
This move formalizes changes that began in late 2023 when Bungie underwent significant internal restructuring, including layoffs reportedly affecting up to 100 staff members. The studio has faced challenges with declining Destiny 2 player engagement and internal management issues since the acquisition.
Sony’s original purchase terms were notably generous, granting Bungie approximately $1.2 billion in retention bonuses and autonomy over their intellectual property. The acquisition was primarily motivated by Sony’s desire to leverage Bungie’s expertise in live service games—an area PlayStation has been eager to expand into.
Along with the integration news, Sony provided an update on Marathon, Bungie’s upcoming extraction shooter that revives one of the studio’s classic pre-Halo franchises. The game is expected to launch within Sony’s current fiscal year, which ends in March 2025, though executives cautioned this isn’t a guaranteed release window.
When questioned about the possibility of Marathon‘s cancellation, Sony representatives stated this isn’t in their plans, but added that if circumstances changed, they would need to reassess Bungie’s valuation. The project has reportedly faced development challenges, including delays and internal testing issues.
Bungie’s journey from independence to PlayStation integration mirrors their earlier history. The studio originally developed the Halo series under Microsoft before splitting off in 2007, then entered a publishing agreement with Activision for Destiny before going independent again in 2019, only to be acquired by Sony in 2022.
From Halo to hard times
The studio that once dominated the FPS genre with Halo and later Destiny has struggled to maintain its momentum in recent years. Internal reports suggest Destiny 2‘s revenue missed targets, forcing cost-cutting measures and project delays across the company. Marathon itself was initially targeted for 2024 but has since been pushed back amid development hurdles.
As Bungie completes its integration into PlayStation Studios, the developer will likely face greater oversight from Sony while contributing to the company’s broader live service ambitions. For PlayStation, the success of Marathon and Bungie’s future projects may significantly impact their long-term strategy in the competitive live service market.
