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Home » PlayStation’s Surprise Closure of Iconic First-Party Studio Leaves Fans Shocked

PlayStation’s Surprise Closure of Iconic First-Party Studio Leaves Fans Shocked

Zainab Fatima by Zainab Fatima
February 20, 2026
in Gaming
Reading Time: 1 min read
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PlayStation's Surprise Closure of Iconic First-Party Studio Leaves Fans Shocked
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PlayStation has unexpectedly shut down one of its most acclaimed studios, known for producing some of the early titles for the PlayStation 5 and delivering exceptional work.

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Which studio is PlayStation closing?

Bluepoint Games, a Sony subsidiary celebrated for creating high-quality remasters like Shadow of the Colossus and Demon’s Souls, has been shut down by Sony. Bloomberg’s Jason Schreier broke the news, stating that approximately 70 employees will lose their jobs as a result.

In a statement to Bloomberg, PlayStation confirmed the closure, explaining it was due to “a recent business review.” The company also praised Bluepoint’s contributions to PlayStation, calling the team “incredibly talented” and highlighting their technical skills in delivering outstanding experiences for PlayStation fans. The statement expressed gratitude for their passion, creativity, and craftsmanship.

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Founded in 2006 in Austin, Texas, Bluepoint gained recognition for developing remakes of classic games with high fidelity. Sony acquired the studio in 2021, shortly after the launch of Demon’s Souls for PS5.

Following that, Bluepoint contributed to co-developing God of War Ragnarök in 2022 and was reportedly working on a live-service game set in the God of War universe. However, that project was canceled in 2025.

As of now, Bluepoint has not issued an official comment regarding the shutdown, and the future for its staff remains uncertain. It’s also unclear what projects, if any, they had in progress for Sony prior to the closure. Most reports in 2025 suggested the studio was exploring new directions with Sony after the cancellation of the God of War live-service game.

(Source: Bloomberg)

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Zainab Fatima

Zainab Fatima

I am a Computer Science major with a knack for writing. I am a freelance content writer with two years of experience. I manage SEO-friendly content for several blogs and websites. My niches of interest include technical writing, newsletters, and website copy.

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