Sony to shut down Bluepoint Games, around 70 jobs affected

Published: 20:03, 19 February 2026
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Sony to shut down Bluepoint Games, around 70 jobs affected
Sony closing Bluepoint Games, PlayStation studio known for high-end remakes like Demon's Souls and Shadow of the Colossus, with around 70 staff laid off

Key Points from the Article

  • Studio closure follows cancellation of a God of War live-service game in January 2025 that employees had transitioned to after Ragnarök
  • PlayStation CEO Hermen Hulst cites growing development costs, slowing growth, and evolving consumer habits as industry challenges driving the decision
  • Sony acquired Bluepoint in 2021 and may reassign some staff to other studios in its worldwide network
  • Closure part of broader gaming industry trend of publishers evaluating and adjusting studio rosters
Sony closing Bluepoint Games, PlayStation studio known for high-end remakes like Demon's Souls and Shadow of the Colossus, with around 70 staff laid off

Sony is closing Bluepoint Games next month, with roughly 70 employees impacted following a business review.

Sony Group Corp. will close Bluepoint Games, its PlayStation studio famed for lavishly detailed remakes like Demon’s Souls. The news was reported on February 19, and the studio will officially close later this month. A PlayStation spokesperson said the closure came “after a recent business review.”

Around 70 staff will be laid off due to the studio’s shutdown. PlayStation provided the following statement: “Bluepoint Games is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community. We thank them for their passion, creativity and craftmanship.”

Further details on why Bluepoint Games was let go came from Hermen Hulst himself, the CEO of the Studio Business Group. 

In an internal memo addressed to Bluepoint employees that he wrote himself, he expressed gratitude for what they built at the studio and continued on: “This decision was not made lightly. Bluepoint is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community.”

Hulst also mentioned that Sony will look into reassigning some staff members to other studios in Sony’s worldwide studio network if possible.

A Studio Known for High-End Remakes

Bluepoint is an Austin, Texas-based studio founded in 2006. It gained recognition for remakes and remasters of older games with updated graphics and gameplay mechanics. 

In addition to Demon’s Souls, Bluepoint worked on remakes of Shadow of the Colossus and helped develop God of War Ragnarök.Sony announced its acquisition of Bluepoint Games in 2021 following the release of Demon’s Souls for PlayStation 5.

Employees transitioned to a live-service game in the God of War franchise following Ragnarök’s release. That game was cancelled in January 2025. PlayStation only stated that it was looking into the studio’s next project at the time.

Industry Challenges 

In his announcement to staff, Hulst highlighted growing development costs, slowing growth, and evolving consumer habits as some of the issues facing the industry. 

He went on to say that PlayStation Studios needs to evolve with the times in order to stay positioned for success long-term. Hulst ended his note saying he believes in the vision for PlayStation Studios and is happy with its lineup for the next fiscal year, despite how “hard to hear” the announcements must be for employees.


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