Sony is at a loss of around $765 million due to Destiny 2 maker Bungie, and the reason is…

Sony has reported an impairment loss of approximately $765 million linked to Bungie, the studio behind games like Marathon and Destiny 2. The Japanese gaming giant cited the underperformance of these titles and a decline in the expected value of its assets as the reasons for the decline. The figure was disclosed in the company’s fiscal year 2025-26 report, where Sony recorded a 120.1 billion yen hit to operating income due to “impairment losses against Bungie, Inc.’s intangible and other assets,” a Eurogamer report noted.An impairment loss occurs when the recorded value of an asset exceeds its recoverable value. In this case, Sony effectively revised Bungie’s valuation downward, indicating the studio was worth $765 million less than previously estimated.The total impairment charge includes 31.5 billion yen (around $200 million) recorded in the second quarter, primarily tied to Destiny 2’s weaker-than-expected performance. An additional 88.6 billion yen (about $565 million) was booked in the fourth quarter, bringing the total to roughly $765 million for the fiscal year, the report noted.The fourth-quarter charge coincided with the release window of Marathon, Bungie’s extraction shooter title. The game reportedly struggled to retain its players post-launch, raising questions about its long-term viability. Marathon reportedly cost over $200 million to develop, and its declining player base has raised questions about its viability as a game. Despite these concerns, Bungie developers have stated they are “in it for the long haul,” and internal sentiment is described as stable.Meanwhile, Destiny 2, a long-running live-service title, also contributed to the impairment due to softer-than-expected performance.Despite the Bungie-related losses, Sony reported a 12% year-on-year increase in operating income. The increase was driven by stronger network services and favourable foreign exchange movements. Next year, Sony expects a 30%% jump in operating income, partly because there will be no such impairment losses.Sony bought Bungie in 2022 for $3.6 billion and is basing its live-service-gaming strategy on the studio. The recent impairment raises questions about how quickly Bungie can regain value and whether its upcoming roadmap can stabilise performance.