Sony’s gaming division, already facing legal challenges in the Federal Court over its sales practices, is struggling to generate returns from its A$5.6 billion acquisition of Bungie, the studio behind Destiny 2.

In its latest financial report, Sony admitted the Bungie acquisition “failed to meet the expectations we had at the time of the purchase.” Sales of Destiny 2 have slumped, prompting the company to revise forecasts and record an impairment loss against a portion of Bungie’s assets.

The division’s performance has also been affected by slower-than-expected PlayStation hardware sales. A year after launching the PS5 Slim and PS5 Pro, Sony reported 3.9 million units sold in the last quarter—slightly above the 3.8 million sold during the same period last year—bringing total PS5 sales to 84.2 million units since launch.

Adding further pressure, Sony earlier forecast a US $700 million revenue hit for fiscal 2025 due to U.S. import tariffs, as most console sales occur in that market.

Delays to Rockstar’s Grand Theft Auto VI have also weighed on expectations. Originally planned for May 2026, the highly anticipated title is now set for release on November 19, 2026.

At Bungie, the studio is working on Marathon, an extraction shooter that was delayed following mixed feedback from closed alpha testing in June. The delay came less than a year after Sony cut around 220 jobs at the studio.

Despite these setbacks, Sony highlighted Helldivers 2 as a standout performer. The multiplayer shooter saw a “significant increase in sales” after launching on Microsoft’s Xbox platform earlier this year.

Sony said live-service titles now account for more than 40 percent of first-party software revenue, describing them as a “recurring source of income.” Monthly active users across PlayStation rose 3 percent year-on-year to 119 million, while total playtime increased by 1 percent.

Sony also reported that Ghost of Yotei has surpassed 3.3 million sales since its October 2 launch, calling it a “major hit” comparable to its predecessor.

“Game software and network services sales are steadily growing,” the company said. “We expect this trend to continue in the second half, driven by the shift to higher network service tiers and strong first-party releases. As for PlayStation 5 hardware, we aim to expand the installed base during the year-end season while maintaining overall segment profitability.”