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Chronicles

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Sony to shut down Playstation Home virtual social hub in March 2015, after six years

PlayStation Home Finally Closing Down  —  Goodnight, sweet prince.  You were... you, um... well at least you tried.  —  PlayStation Home, Sony's long-running (though never exactly beloved) …

Kotaku Nathan Grayson

Context & Ripple Effects

PlayStation Home launched in March 2007 as Sony's free virtual world for the PlayStation 3 — a Second Life-style social hub where avatars could gather in public spaces and buy virtual goods. Six years on, Sony confirmed this week that the service shuts down in March 2015, and the news traveled widely, picked up by Engadget, IGN, GameSpot, VG247, Joystiq, The Next Web, Electronista, and others within a day.

The closure lands mid-retrenchment at Sony: within the past month the company booked a 180 billion yen ($1.7 billion) goodwill impairment against its struggling smartphone unit, exited the PC business with Vaio, and positioned itself to chase an Internet TV service alongside Verizon. Killing Home fits that pattern — retiring a costly, never-beloved experiment while concentrating on core games and new service bets.

First-order effects

  • PlayStation 3 owners who used Home as their social space lose the service outright in March 2015, along with any purchased virtual goods tied to it.
  • Sony stops paying to run Home's servers and staff, cutting an ongoing cost line from a division already managing downward earnings expectations.

Second-order effects

  • Developers and brands that built storefronts and promotional spaces inside Home must relocate or abandon that audience, removing one of the few non-game revenue surfaces on PS3.
  • The shutdown frees Sony's network-services attention for its announced priorities — the Verizon-partnered Internet TV push and its Xperia device lineup — rather than maintaining legacy social infrastructure.

Third-order effects

  • If the pattern holds, Sony is settling into a discipline of pruning underperforming side platforms early rather than carrying them indefinitely, which raises the bar for how long any niche PlayStation service survives without traction.
  • For console makers broadly, Home's six-year run without becoming beloved is evidence that metaverse-style social hubs bolted onto consoles struggle to hold mainstream audiences — a caution other platform holders weigh before funding similar worlds.

The trend: Sony is systematically shutting down underperforming experimental services to concentrate resources on core gaming and its smartphone-and-television service ambitions.