Sony to close Bluepoint Games, about 70 jobs cut in March

Sony is closing Bluepoint Games, the Austin studio responsible for acclaimed remakes including Demon’s Souls and Shadow of the Colossus, and plans to cut about 70 staffers as the studio winds down in March. The company said the decision came “following a recent business review,” and praised the team’s work while announcing the change.

A Sony spokesperson 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 craftmanship.” The company did not immediately provide further details about the timing of the layoffs or whether any employees will be reassigned within PlayStation Studios.

Bluepoint, founded in Austin and acquired by Sony in 2021, built a reputation over two decades for remasters and remakes that combined technical polish with reverence for originals. Its catalog includes the PS5 Demon’s Souls remake, the PS4 Shadow of the Colossus remake, the Uncharted: The Nathan Drake Collection, the Metal Gear Solid HD Collection, Gravity Rush Remastered and other remaster projects. After its acquisition, Bluepoint also provided development support on God of War: Ragnarök in 2022.

In recent years the studio’s trajectory shifted toward larger, original ambitions. Multiple reports say Bluepoint spent years developing an unannounced live-service God of War project that was cancelled in January 2025. After that effort ended, the studio had been hiring for a third-person action game, an indication leaders were seeking new directions beyond remakes. At the time of the acquisition, Bluepoint president Marco Thrush said the company was “working on original content” and called the buy “the next step in the evolution for us.”

The shutdown marks another consolidation for PlayStation Studios. Bluepoint is the latest studio to be closed after a string of recent PlayStation shutdowns; company reorganizations in the last two years have included several studio exits. Industry observers and players have expressed shock that a studio long celebrated for technical craftsmanship and faithful revivals would be shuttered after being steered toward large-scale, riskier projects.

Community reaction was immediate and emotional. One user posting on gaming forums summed up the mood with three words: “We are going backwards.” Other commenters criticized the decision to move the studio onto a live-service path only to cancel that work and then close the studio.

Key details remain unresolved. It is unclear whether all of the roughly 70 employees will be laid off or whether some will be absorbed into other PlayStation teams. Sony has cited its business review but has not disclosed the review’s scope or the timeline of decisions that led to closure.

This is a developing story. Sony has said it is grateful for Bluepoint’s contributions; PlayStation has not yet offered details about severance, staff transitions or the exact date in March when the studio will cease operations.