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The Last Of Us Online Is Officially Canceled

Naughty Dog ceased development on the multiplayer spin-off citing live-service concerns

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Ellie hides from the executives.
Image: Naughty Dog

The Last of Us Online is dead. Naughty Dog announced today that the multiplayer spin-off of the hit series is no longer in development, citing concerns about managing ongoing content for a live-service game while still trying to produce the single-player blockbusters the PlayStation studio is famous for.

“We realize many of you have been anticipating news around the project that we’ve been calling The Last of Us Online,” Naughty Dog wrote in a December 14 update. “There’s no easy way to say this: We’ve made the incredibly difficult decision to stop development on that game.”

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The studio said that as production on the project ramped up, it became clear that “we’d have to put all our studio resources behind supporting post launch content for years to come, severely impacting development on future single-player games.” The choices were apparently between becoming a “solely live-service games studio” in the mold of modern day Bungie, which makes Destiny 2, or “continue to focus on single-player narrative games that have defined Naughty Dog’s heritage.”

The Last Of Us Online, which many many fans previously referred to as Factions after the multiplayer mode from the original 2013 PlayStation 3 game, was first announced during Summer Game Fest 2022. The spin-off was billed as the studio’s “biggest online experience” ever, and as large as any of its single-player games.

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But Naughty Dog never showed the game beyond vague statements and concept art. Then in May of this year, Bloomberg reported that the production team on the game had be scaled back following negative feedback from an internal review by Bungie, which Sony acquired last year. At the time, the studio posted a statement on Twitter saying that while things were progressing well, the game required more time. By October, however, Kotaku reported that the project had been “put on ice” amid some internal reshuffling and dozens of contracted developers being laid off.

The Last of Us Online was one of a number of new multiplayer projects in development across Sony’s studios as the PlayStation 5 maker invested in a massive shift toward more live-service games. In November, Sony revealed during an earnings call that half of the roughly dozen online games it was working on would be delayed past 2025.

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In the meantime, Naughty Dog is still working on a “brand-new single-player game” it plans to reveal sometime in the future.

Here’s Naughty Dog’s full blog post:

We realize many of you have been anticipating news around the project that we’ve been calling The Last of Us Online. There’s no easy way to say this: We’ve made the incredibly difficult decision to stop development on that game.

We know this news will be tough for many, especially our dedicated The Last of Us Factions community, who have been following our multiplayer ambitions ardently. We’re equally crushed at the studio as we were looking forward to putting it in your hands. We wanted to share with you some background of how we came to this decision.

The multiplayer team has been in pre-production with this game since we were working on The Last of Us Part II – crafting an experience we felt was unique and had tremendous potential. As the multiplayer team iterated on their concept for The Last of Us Online during this time, their vision crystalized, the gameplay got more refined and satisfying, and we were enthusiastic about the direction in which we were headed.

In ramping up to full production, the massive scope of our ambition became clear. To release and support The Last of Us Online we’d have to put all our studio resources behind supporting post launch content for years to come, severely impacting development on future single-player games. So, we had two paths in front of us: become a solely live service games studio or continue to focus on single-player narrative games that have defined Naughty Dog’s heritage.

We are immensely proud of everyone at the studio that touched this project. The learnings and investments in technology from this game will carry into how we develop our projects and will be invaluable in the direction we are headed as a studio. We have more than one ambitious, brand new single player game that we’re working on here at Naughty Dog, and we cannot wait to share more about what comes next when we’re ready.

Until then, we’re incredibly thankful to our community for your support throughout the years.