The Last of Us Online Was Nearly Complete When It Was Cancelled

Naughty Dog's decision to cancel The Last of Us Online, a standalone multiplayer game set in The Last of Us universe, was met with confusion among some PlayStation fans and may have fueled negative sentiment toward other online games like Concord and Marathon. Vinit Agarwal, director of The Last of Us Online, revealed in an interview with Lance E. Lee that the decision to cancel the project came from Naughty Dog itself after the studio assessed what was required to sustain an online game. Ultimately, the studio chose to cancel The Last of Us Online, a decision that aligned with statements Neil Druckmann made at the time. According to Agarwal, Naughty Dog was forced to choose between completing The Last of Us Online and prioritizing Neil Druckmann's new project, Intergalactic: The Heretic Prophet.

Cancellation of Last of Us Online Amidst Financial Shifts and Pandemic Impact

Several factors contributed to the cancellation. Agarwal worked on The Last of Us Online, overseeing the multiplayer aspects, from 2016 until its cancellation in 2023. Although Sony's increased investment in online initiatives significantly increased the project's budget, the game was already in production. It didn't originate from this new focus on service games. Furthermore, the COVID-19 pandemic led to decreased online gaming time and reduced investment in gaming. Agarwal also noted that The Last of Us Online was approximately 80% complete when it was canceled. He learned of the cancellation just 24 hours before Sony's public announcement. Matthew Gallant, another member of Naughty Dog's team, was involved in the earlier Factions Mode project (also known as The Last of Us Part II Multiplayer) before departing from the company; that project was also canceled. Following the cancellation of The Last of Us Online, Agarwal left Naughty Dog and founded his own game development studio based in Japan. His remarks clarify the circumstances surrounding the project's cancellation.

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In a departure from our usual gaming discussions, we'd like to draw your attention to another insightful piece on the blogosphere. Ahmed Hassan's "Sasha Grey Turns 38, Seven Years Devoted to Video Game Streaming" (published April 4th, 2026) offers an engaging exploration of former adult film actress and Twitch streamer Sasha Grey's impressive seven-year journey in video game streaming. Discover how she's amassed a staggering 11.1 million subscribers across her channels, tackled challenging games like Elden Ring with finesse, and even ventured into voice acting and cooking segments here Sasha Grey Turns 38, Seven Years Devoted to Video Game Streaming. Meanwhile, continuing our coverage on Japan's dynamic gaming scene, Jonathan Dubinski explores an unexpected trend in his April 4th post, 'PS5 Outsold Nintendo Switch in Japan'. Published just last month, this insightful article delves into the weekly sales figures from March 16-22, revealing a surge of interest in both classic and newer games. Bucking conventional wisdom, Dubinski finds that despite its later release, the PS5 outsold the Nintendo Switch during this period. Discover more about Japan's shifting gaming landscape by checking out his analysis here PS5 Outsold Nintendo Switch in Japan. Midway through this discussion on game launches, it's worth pausing to consider the fate of Nexon's The First Descendant. As Bruno Pferd reports in his recent piece "The First Descendant is a Failure" (April 4, 2026), the game's inability to maintain player interest has led Nexon to declare it a struggling service. Pferd delves into Nexon's investor presentation, where Executive Director Junghun Lee highlights the critical issue of retaining players beyond launch excitement. If you're curious about what went wrong and how these insights might apply to other recent service games, head over to Players for Life to read Bruno's insightful analysis here The First Descendant is a Failure.