The company explained that the Pay TV industry has become incredibly competitive since it first launched PlayStation Vue.
"Unfortunately, the highly competitive Pay TV industry, with expensive content and network deals, has been slower to change than we expected," said Sony.
"Because of this, we have decided to remain focused on our core gaming business."
Profitability issues
Sony launched its PlayStation Vue service in March 2015, but it struggled to make the service profitable.
Vue offers a small bundle of default channels, as well as the ability to add premium channels to your package – including channels related to sport and entertainment.
However, the struggle to make the Vue streaming service financially viable has resulted in price hikes, with the latest increases seeing the cheapest Vue product priced at $50 per month.
At its peak, PlayStation Vue had about 500,000 subscribers.
"We are very proud of what PlayStation Vue was able to accomplish," said Sony.
"We had ambitious goals for how our service could change how people watch TV, showcasing PlayStation's ability to innovate in a brand-new category within the Pay TV industry."
"PlayStation fans can continue to access movie and TV content through the PlayStation Store on PS4 and via our partnerships with top entertainment apps," the company said.
