
Sony and Honda have officially terminated their joint venture to produce cars capable of streaming PlayStation 5 games. The collaboration, announced in December, aimed to launch the Afeela 1 vehicle line this year, featuring built-in screens for rear-seat passengers to enjoy PS4 or PS5 titles.
It remains uncertain how many units Sony Honda Mobility (SHM) anticipated selling or how much consumer interest the initial announcement generated. Nonetheless, the companies confirmed today that the entire project has been canceled, with refunds issued to those who paid reservation fees.
In a statement, SHM explained the decision: "Following internal discussions, we have decided to discontinue the development and launch of our first model, Afeela 1, and the second Afeela model under development." The joint venture, established in September 2022, sought to leverage Sony and Honda's combined technologies and expertise to create high-value mobility products and services.
However, SHM cited Honda's reassessment of its electrification strategy on March 12, 2026, as a key factor: "SHM will not be able to utilize certain technologies and assets originally planned from Honda. Given this change, we determined there is no viable path to market these models as intended."
While the Afeela vehicles were electric, the specific reasons for the cancellation beyond likely low interest are unclear. Adding to the confusion, SHM's website still lists the Afeela as launching in "late 2026" for $102,900, with another model slated for 2027, despite the project's termination.
The gaming feature would have relied on Remote Play, requiring a PS5 console to be active at home and a stable internet connection of at least 15Mbps for smooth streaming. Now, the only way to experience the Afeela is virtually in Gran Turismo 7, where a prototype appears—though without the ability to play additional PS5 games from the backseat.
This news follows recent reports of PlayStation shutting down Dark Outlaw Games, a studio working on an unannounced first-party title, and laying off staff in mobile development. It marks the third Sony studio closure in 18 months, after Firewalk Studios (Concord) in late 2024 and Bluepoint Games (Demon's Souls and Shadow of the Colossus Remake) last month.

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