Sony shutting down Bluepoint Games, studio behind Demon's Souls remake

Sony is shutting down Bluepoint Games

Sony is closing Bluepoint Games, the studio behind acclaimed remakes like Demon’s Souls and Shadow of the Colossus. The closure, first reported by Bloomberg, will result in about 70 layoffs and is scheduled for March.

A Sony spokesperson told Bloomberg the decision followed a recent business review. The company praised Bluepoint as "an incredibly talented team" that delivered "exceptional experiences for the PlayStation community."

A studio pivot that didn't work out

Sony acquired Bluepoint in 2021 after the studio built a strong reputation for high-quality remasters and remakes. Its portfolio before the acquisition included:

• The Shadow of the Colossus remake (2018)
• The Demon’s Souls remake (2020)
• Remasters for the Uncharted series and Gravity Rush

After the purchase, Sony shifted the studio's focus away from its remake specialty. Bluepoint co-developed 2022's God of War: Ragnarok and spent subsequent years working on an unannounced live-service God of War title.

That live-service project was canceled by Sony in January, leaving Bluepoint without a publicly announced major project just weeks before the studio's closure was decided.

Part of broader PlayStation studio cuts

Bluepoint is the latest PlayStation studio to be shuttered or significantly restructured. Sony has been reevaluating its development footprint, particularly around live-service games.

In 2024, Sony closed Firewalk Studios shortly after the disastrous launch of its live-service game, Concord. It shut down mobile studio Neon Koi at the same time.

Also in 2024, Bungie laid off 220 employees and moved other staff into Sony Interactive Entertainment following underperformance of its live-service title, Destiny 2.

What comes next for the team

The closure of a studio with Bluepoint's technical pedigree is a significant loss for PlayStation's first-party portfolio. The studio was renowned for its craftsmanship in visually revitalizing classic games.

It is unclear if Sony will attempt to reassign the affected developers to other internal teams. The spokesperson's statement thanked the team for their "passion, creativity and craftsmanship," but did not outline any transition plans.

The shutdown underscores the volatile environment for game studios, even those with a proven track record, as platform holders like Sony adjust their strategies in a competitive market.