Sony Interactive Entertainment Will Shut Down Bluepoint Games

In a recent Bloomberg report, Sony Interactive Entertainment confirmed that it will shut down Bluepoint Games, the developer behind the Demon’s Souls and Shadow of the Colossus remakes. The studio will close in March. Bluepoint Games was acquired by Sony in September 2021, about a year after the release of the Demon’s Souls remake. Following the acquisition, the studio worked as a co-developer on God of War Ragnarok and was also involved in an unannounced God of War live-service game, which was canceled in January 2025.

The full email to employees regarding the studio closure from Sony from Sony Interactive Entertainment Studio Business Group CEO Hermen Hulst:

Hello everyone,

I wanted to share an important update from the Studio Business.

As I mentioned in the December Town Hall, 2025 had some strong highlights within PlayStation Studios. Ghost of Yotei launched to critical and commercial success, Death Stranding 2: On the Beach further showcased our commitment to narrative excellence, and Helldivers II and MLB The Show continue to drive on-going player engagement and revenue.

At the same time, we’re operating in an increasingly challenging industry environment. Rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds are making it harder to build games sustainably.

To navigate this reality, we need to continue adapting and evolving. We’ve taken a close look at our business to ensure we’re delivering today while still well-positioned for the future. As a result, we will be closing Bluepoint Games in March.

This decision was not made lightly. Bluepoint is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community. I want to thank everyone at Bluepoint for their creativity, craftsmanship, and commitment to quality. Where possible, we will work to find opportunities for some impacted employees within our global network of studios.

While I know this is hard news to hear, I’m confident in the direction we’re headed. Creativity, innovation, and building unforgettable experiences for players remain at the heart of PlayStation Studios. We have a robust roadmap for fiscal year 26, with much to look forward to in the months ahead.

Thank you for your hard work and continued support.

Best,

Hermen Hulst

CEO, Studio Business Group