Report : PlayStation has Closed Bluepoint Games

In a very surprising turn, Jason Schreier at Bloomberg has reported that PlayStation has shut down Bluepoint Games. Founded in 2006 and well known for their Shadow of the Colossus and Demon’s Souls remakes, the studio was acquired by PlayStation in 2021.

Over the last few years, it was reported that they were developing a God of War live-service title but it was eventually cancelled. According to the report, over the last year they’ve attempted to pitch new projects to PlayStation leadership but none landed. In an internal memo acquired by Kotaku, PlayStation Head of First-Party, Hermen Hulst, seemed to shift the blame.

I wanted to share an 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 2 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, craftmanship, 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 FY26, with much to look forward to in the months ahead. Thank you for your hard work and continued support.

Sadly, this means that another long-tenured studio is a casualty of the industry and more than 70 developers are now looking for work. As always, we’re sorry to see it and wish everyone impacted all the best in finding new roles.