Vinit Agarwal, director of the canceled Last of Us Online, has spoken publicly about the circumstances surrounding the project’s termination, revealing he was informed of the decision just 24 hours before it was announced to the public.

Seven Years, One Day’s Notice

Speaking on the Lance E. Lee Podcast from Tokyo, as reported by Kotaku, Agarwal described the cancellation as “devastating” and “soul-crushing,” particularly given that the game had reached approximately 80% completion after seven years of development. “The game was doing really, really well internally,” he said, adding that it was “very close to done” at the time the decision was made.

Agarwal explained that Last of Us Online secured its funding during the COVID-era gaming boom, when Sony, alongside much of the industry, redirected significant investment toward online titles. As pandemic spending subsided and players returned to offices, that financial momentum reversed sharply.

A Studio at Crossroads

Naughty Dog ultimately faced a binary choice: proceed with Last of Us Online, or commit resources to the next project from Neil Druckmann. Agarwal acknowledged the studio opted for what he called “the bread and butter” of Naughty Dog’s identity over the multiplayer title he had led.

The cancellation was formally announced in 2023. Former PlayStation executive Shuhei Yoshida had noted he found the game impressive during playtesting, lending further weight to the sense of loss expressed by those involved in its development.

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