Naughty Dog's cancelled Last of Us multiplayer game was nearly finished

The Last of Us Online was approximately 80% complete when Naughty Dog cancelled the multiplayer project three years ago, according to Vinit Agarwal, the game's former director. Agarwal, who has since left the studio and founded a new company in Japan, revealed the development status during a recent interview where he described the cancellation as 'soul-crushing' after spending seven years on the project.

What led to the cancellation decision

According to Agarwal, the cancellation came down to a choice between his experimental multiplayer project and Neil Druckmann's next single-player game. Naughty Dog ultimately prioritised what Agarwal called 'the bread and butter of the studio' — their signature narrative-driven experiences.

'Basically, at one point, a decision had to be made. Okay, make this game or make the next game that Neil Druckmann was directing, the president of the company,' Agarwal explained. 'They had to pick the game that was kind of the bread and butter of the studio rather than this experimental game that I was working on.'

The timing was particularly harsh for Agarwal, who discovered the cancellation just 24 hours before Naughty Dog's public announcement. 'I remember honestly finding out that it was getting cancelled 24 hours before it was announced to the public. That's how I found out about the game getting cancelled,' he said.

Sony's live-service strategy shift

Agarwal attributed part of the decision to Sony's broader strategic changes around live-service games. The company had pushed heavily into multiplayer experiences starting around 2020, during the Covid-19 pandemic when online games became essential for social connection.

However, as pandemic restrictions eased and player habits shifted, Sony pulled back from this investment. The combination of changing market conditions and internal resource allocation at Naughty Dog ultimately sealed The Last of Us Online's fate.

This mirrors broader industry trends, with several major publishers scaling back their live-service ambitions in favour of proven single-player experiences that have historically driven their success.

What this means for Naughty Dog's future

Naughty Dog is now focusing entirely on Intergalactic: The Heretic Prophet, Druckmann's science fiction project for PlayStation 5. The studio has been clear about returning to its roots in single-player storytelling.

Despite the multiplayer cancellation, Druckmann has continued to tease more content from The Last of Us universe. It's been six years since The Last of Us Part II launched, nearly matching the gap between the first and second games. Industry observers expect a potential The Last of Us Part III might not arrive until the 2030s on PlayStation 6.

For fans following The Last of Us Season 3 developments, the franchise continues to expand through HBO's television adaptation, even as the gaming side focuses on single-player experiences.

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