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Naughty Dog’s Multiplayer Ambition Cancelled: How “The Last of Us Online” Dominated the Studio’s Resources

8/20/2026, 8:10:08 PM

Core Event – Cancellation of The Last of Us Online

In December 2023, Naughty Dog announced the termination of its long-running multiplayer spin-off, The Last of Us Online. The decision framed a pivotal fork for the entire studio: become a live-service-only operation or continue focusing on narrative-driven single-player titles.

Background & Context – From Factions to a Full-Scale Service Game

The project originated in pre-production shortly after work on The Last of Us Part II concluded. While Naughty Dog released PS5 remakes of *The Last of Us* (2020) and *The Last of Us Part II*, as well as remasters of the *Uncharted* series, the majority of its California staff were allocated to the multiplayer effort. Journalist Jason Schreier highlighted that the common fan belief—that the studio split its headcount between the multiplayer and a new single-player project called Intergalactic: The Heretic Prophet—was reversed: the multiplayer occupied most of the workforce until its cancellation.

Data & Statistics – Scale and Progress of the Cancelled Project

  • Development spanned roughly seven years (from early 2020s to 2023).
  • The team reported the game was about 80 % complete when the plug was pulled.
  • The “massive scope” of the live-service ambition would have required restructuring the studio into a service-focused operation.

Official Statements & Responses – Perspectives from Naughty Dog and Sony

Former SIE Worldwide Studios head Shuhei Yoshida added that guidance from Bungie—the creators of *Destiny*—made the studio realize the challenges of sustaining a live-service game, prompting the cancellation. Yoshida praised a build he had played, calling it “great,” but emphasized the strategic trade-off.

Verbatim Quotes

  • “A lot of people were working on that game. I think there’s a belief out there that The Last of Us Online was just kind of a side project while most people were working on Intergalactic. No, the opposite is true. Intergalactic did not have the majority of staff until after The Last of Us Online was cancelled.” — Jason Schreier, journalist
  • “The idea for The Last of Us Online came from Naughty Dog and they really wanted to make it,” — Says Yoshida

Why It Matters – Impact on Naughty Dog’s Release Cadence

The cancellation left Naughty Dog without a brand-new original title since The Last of Us Part I (2020). The studio’s output on the current PlayStation generation has been limited to remakes and remasters, explaining the perceived “six-year hiatus” for new narratives. With Intergalactic: The Heretic Prophet now absorbing the majority of staff, the project carries the weight of the studio’s future direction and the expectations of PS5 owners in regions such as New Zealand and Australia.

What’s Next – Upcoming Projects

Naughty Dog has confirmed multiple projects are in development, including Intergalactic: The Heretic Prophet, which is slated for release “next year” according to industry speculation, though no firm date has been announced. The studio’s roadmap suggests a return to original single-player releases, potentially ending the extended period of remaster-focused output.