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Does the report mention other PlayStation live-service projects that were canceled or scaled back?

Yes. The report cites other recent PlayStation live-service setbacks, naming Concord and Bungie’s Marathon as high-profile failures and noting Sony canceled live-service projects in The Last of Us, Marvel’s Spider-Man, and God of War franchises. It also says PlayStation’s live-service initiative has mostly led to canceled projects, shuttered studios, and a pullback from plans to release more than a dozen live-service games this decade. Answered

PlayStation is rebooting Horizon Hunters Gathering to be a traditional co-op game and not a live-service thing
Why did PlayStation and Guerrilla Games decide to remove live-service elements from Horizon Hunters Gathering?

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 is rebooting Horizon Hunters Gathering to be a traditional co-op game and not a live-service thing
What changes are being made to Horizon Hunters Gathering’s scope and design?

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

PlayStation is rebooting Horizon Hunters Gathering to be a traditional co-op game and not a live-service thing