Bungie announcing that support for Destiny 2 would be ending, and that there wouldn’t be a Destiny 3, is still an extremely sore point and bone of contention for the franchise’s loyal fans. Drama continues about Sony and Bungie’s relationship and how it ties into Destiny’s halt.
It’s been an incredible last few weeks that have seen one of the most consistent live-service games essentially relieved of its duties. Bungie is shutting Destiny 2 down, and Bungie is set to lose roughly 400 staff in layoffs.
It’s a tumultuous time, to say the least, so let’s run through everything.
Before I get into this explainer, consider downloading the free Insider Gaming app for the cleanest way to read your gaming news on iOS and Android.
Why is Destiny Shutting Down?
Bungie is shutting down Destiny 2 and not developing Destiny 3 because the game isn’t seen as financially successful enough, and has cost Sony a lot of money.
A declining player base and loss of interest in Destiny have seen Sony’s 2022 buyout of the company quite unsuccessful. Sony reported earlier this year that it suffered a $765 million loss over Bungie—with Marathon also to blame.
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Alongside Destiny underperforming, there’s likely a desire to try to revitalize Marathon, which has seen massive player number drop-offs since it launched.
According to Steam Charts, Marathon averaged around 35,000 players in its launch month, and by May 2026, it was already down to 8,000. Marathon Season 2 has seen a slight bump in players, but some Marathon players have accused Bungie of ‘Killing the Game’ with a Season 2 update.
So, with Marathon not doing well, why shut down Destiny, which has received a huge boost recently? Is there something deeper on Sony’s side?
Is Sony Getting Revenge on Bungie for Destiny?
According to a report from a reputable insider, Sony isn’t angry or taking revenge on Bungie, and it’s simply a case of Destiny not being financially successful or viable.
I have already gone deeper into this topic in a recent news article: Sony isn’t getting ‘Revenge’ on Bungie for Destiny underperforming.
In it, Paul Tassi revealed (from his sources) that ‘This is almost entirely financial, simply Destiny 2 cost more than it made. Math. Cruel math, but math. No one at Bungie has any belief this is some “revenge” idea.’
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This is even after Destiny 2 fans broke the servers with the Final Update. The build-up to the update was incredible, with thousands of players jumping on board the ‘Save Destiny’ petition.
Unfortunately, internal reports claim that the Final Update’s success didn’t ‘move the needle’ at Bungie.
Bungie’s future is looking bleaker than it is brighter, and while there reportedly isn’t any dispute between Sony and Bungie, it’ll be interesting to see how long the partnership continues, and if the developer can either salvage Marathon or work on a new project(s).
Check out the final Destiny 2: The Collection Trailer as the game’s final proper days happen.
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Andy is Insider Gaming's Senior Evergreen Editor and has been in the games journalism sphere in one way or another for over 7 years. His video game taste is as…
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