Sony is shutting down Bluepoint Games, the studio behind the acclaimed Demon’s Souls remake and other high-profile projects. As reported by Engadget, the closure follows a recent business review and will take effect in March. The decision marks a significant shift for a developer long viewed as one of PlayStation’s most reliable partners.
Bluepoint built its reputation on technically ambitious remakes and remasters, including Demon’s Souls for PlayStation 5 and Shadow of the Colossus for PlayStation 4. Sony acquired the studio in 2021, formalizing what many saw as a natural fit after years of collaboration. At the time, the move appeared to position Bluepoint as a key contributor to PlayStation’s first-party lineup.
The shutdown will reportedly affect around 70 employees. In a statement, Sony said, “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 craftsmanship.” Despite the praise, the studio is expected to close in March.
A shift away from remakes preceded the shutdown
After co-developing God of War: Ragnarok in 2022 alongside Sony Santa Monica, Bluepoint was reportedly assigned to develop a live-service game set in the God of War universe. That project was later canceled in 2025. The pivot from prestige single-player remakes to a live-service title represented a notable change in direction for the studio, arriving as broader business pressures and market uncertainty continued to build, including the JPMorgan tariff burden.
Sony’s wider push into premium online multiplayer projects has faced visible setbacks. While the company has not publicly detailed how Bluepoint’s canceled project impacted the studio’s long-term outlook, the timing places its shutdown within a period of reevaluation across Sony’s portfolio. That reassessment has increasingly shaped decisions around staffing, greenlights, and the types of games that move forward.
Other studios remain tied to online-focused initiatives, including Guerrilla Games with an online co-op project set in the Horizon universe. Bungie is also preparing to release Marathon, an extraction shooter, as Sony continues to invest in live-service development. At the same time, scrutiny around major tech platforms and internal decision-making has remained high across industries, including Ring dog-finding emails.
Bluepoint’s closure closes a chapter for a studio once synonymous with high-end remakes. Its work on Demon’s Souls and Shadow of the Colossus remains part of PlayStation’s modern legacy, even as the company recalibrates its development priorities.
Published: Feb 20, 2026 06:30 am