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According to a Bloomberg report cited in the article, Horizon Hunters Gathering received "poor feedback" during a recent private player test, prompting Sony and Guerrilla Games to strip out its live-service elements and reconceive it as a smaller, story-driven co-op game. The decision was also influenced by the high cost and risk of live-service development and recent disappointing or canceled PlayStation live-service efforts such as Concord and other franchise projects. Answered

PlayStation and Guerrilla Games are stripping Horizon Hunters Gathering of its live-service elements and retooling it as a story-driven co-op game with a smaller scope. Development will continue with a much smaller team than originally assigned. Answered

Development will shift to a much smaller team than was originally assigned to the project. Previously the majority of Guerrilla Games was working on Horizon Hunters Gathering, but Sony and Guerrilla have scaled back to a much smaller development team, leaving only a "tiny team" to work on the next single-player Horizon game. Answered