Completely unexpected: Sony closes highly acclaimed PlayStation studio
Sony is completely unexpectedly closing the studio behind the remake of Demon’s Souls and laying off around 70 developers. Recently there was no longer any trust in the work and ideas of the creative people who were also involved in God of War: Ragnarök.
Sony unexpectedly closes God of War studio
Sony is currently having to revise many of its original plans for the PlayStation. The PS6 will probably not come until 2029 and the memory crisis is forcing the company to make games more expensive in order to keep revenue stable. Financial reasons are probably also the background to Sony Interactive Entertainment’s recent decision to close one of its most prominent internal studios. Austin, Texas-based Bluepoint Games, which is responsible, among other things, for the widely regarded remakes of Demon’s Souls and Shadow of the Colossus, will have to close its doors in March.
The decision comes as a surprise to industry observers and fans alike, as the location has long been considered the technological spearhead within the group. Around 70 developers will lose their jobs as a result of this step. Management has already informed the workforce about the final end and the associated layoffs.
Failed pitches and lack of trust
The trigger for the drastic measure lies in the recent past. The team most recently worked on an ambitious multiplayer title set in the God of War universe for over five years. However, Sony had already canceled the project, which was designed as a live service game, in January 2025. Since then, the studio has been in a state of limbo, searching in vain for a new identity within the PlayStation hierarchy.
The studio management fought to keep the location until the end. Last year, several pitches were submitted for new single-player titles and collaborative projects. However, Sony management rejected these suggestions. Bloomberg said acccording to a recent business analysis, the Japanese lacked confidence in the commercial viability of the new ideas in the current market environment.
Bluepoint as a victim of consolidation?
The closure marks the end of an era for the team, which in the past often operated in the background but was essential to the quality of PlayStation’s first-party titles. Among other things, the Bluepoint team supported various productions as specialists in graphics engines and network code. The best-known projects include titles such as Titanfall and God of War: Ragnarök.
Some industry experts see the closure of Bluepoint Games as another negative consequence of the consolidation of the video game market. Even in 2026, the major publishers appear to be striving to rigorously reduce costs. The only hope left for the employees of Bluepoint Games is to find accommodation at other studios in the region.
