Last year, crosshairs were pointed towards Microsoft after the blanket decision to close & cancel some talent alongside respected projects. At the time, the reports pointed towards developers like The Initiative. This also extended to the long-promised Perfect Dark Remake. Also, projects like Everwild as well as the entire Forza Motorsport IP was also understood to be no more as well. This led to claims of Phil Spencer’s soon retirement, but was denounced shortly after.

On the other hand, PlayStation has also been in the same spotlight as well. Just the year prior, it was revealed it would shutter Concord developer Firewalk Studios & Neon Koi. Additionally, the PlayStation firm has also been on a spree of closing ongoing efforts internally too. In January 2025, it was reported two live-service God of War titles were canned at the PlayStation company.

Now in a new development, it was reported by Bloomberg that Sony Interactive Entertainment is planning to close down the established Bluepoint Games. PlayStation Studios officially welcomed the team via acquisition back in 2021, but Jason Schreier confirms that the decision was made today.

BREAKING: PlayStation is shutting down Bluepoint Games, the studio responsible for modern remakes of classic games such as Demon's Souls and Shadow of the Colossus, Bloomberg News has learned.A shocking end for a well-respected studio.

Jason Schreier (@jasonschreier.bsky.social) 2026-02-19T18:45:17.298Z

Schreier shares that the team responsible for recent PlayStation releases like Demon’s Souls will face at least 70 layoffs with the closure for the Texas-based game studio. The report also revealed that Bluepoint Games was also working on one of the live-service God of War games that was well into development until its demise last year.

The announcement comes as a surprise after major enthusiasm from leadership on the buyout. The team emphasized it would still retain being an independent division under the PlayStation banner. In 2024, it was revealed that a new IP was on the way from Bluepoint Games by its technology head Peter Dolton. You can read the full report by heading here.

Are you surprised by this news break over at PlayStation?

Source: Bloomberg

Nick Moreno Content Writer

Nick has over a decade of video game journalism under his belt. Outside of writing about trending & indie releases, he has also provided coverage at multiple events across the United States including Penny Arcade Expo & E3.

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