Sony Shuts Down Bluepoint Games, 70 Staff Laid Off

Sony is closing remake specialist Bluepoint Games, resulting in 70 job losses. PlayStation Studios head Hermen Hulst cites an "increasingly challenging industry environment."

Sony has announced it is shutting down Bluepoint Games, the acclaimed Austin-based studio known for its high-quality remakes of PlayStation classics, resulting in approximately 70 staff losing their jobs. The studio will officially close its doors in March 2026 following a recent business review, Sony confirmed to Bloomberg.

Founded in 2006, Bluepoint built its reputation through masterful remasters and remakes, including the celebrated 2020 Demon's Souls remake that launched alongside the PS5, the 2018 Shadow of the Colossus remake, and the Uncharted: The Nathan Drake Collection. Sony acquired the studio in 2021, shortly after Demon's Souls sold 1.4 million copies in its launch year. Following acquisition, Bluepoint served as a co-developer on 2022's God of War Ragnarok.

The studio had been developing an unannounced live-service God of War game, but Sony canceled the project in January 2025 as part of a broader retreat from its live-service push. At the time, Sony stated it was working with Bluepoint to determine its next project, but instead, the studio will now be shuttered.

In an internal email viewed by Kotaku, PlayStation Studios head Hermen Hulst explained the decision, citing an "increasingly challenging industry environment" with "rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds" making it harder to build games sustainably . Hulst thanked the team for their "creativity, craftsmanship, and commitment to quality" and stated that where possible, Sony would work to find opportunities for some impacted employees within its global studio network.

The closure comes despite PlayStation's gaming division recently posting a 19% profit increase. Bluepoint is the third acquired studio Sony has shut in under two years.