PlayStation shuts down Bluepoint Games, the studio behind Demon's Souls remake

Sony is shutting down Bluepoint Games in March, laying off 70 staff at the studio behind the acclaimed Demon's Souls PS5 remake. The closure follows cancelled projects and marks the fourth PlayStation studio shutdown since 2024.

Sony Interactive Entertainment is closing Bluepoint Games in March, affecting approximately 70 employees, according to a Sony spokesperson who told Bloomberg. The Austin, Texas-based studio, acquired by Sony in 2021, specialised in remakes and remasters including the critically acclaimed Demon's Souls for PlayStation 5.

A challenging industry environment

PlayStation Studios boss Hermen Hulst explained the closure in a message reposted on gaming forum Resetera, citing an 'increasingly challenging industry environment'. 'Rising development costs, slowed industry growth, changing player behaviour, and broader economic headwinds are making it harder to build games sustainably,' Hulst wrote.

The decision follows a recent business review and comes despite Sony raising both its gaming sales and operating income forecasts for the current fiscal year. Sony's overall group profit is up 22% year-on-year, highlighting the disconnect between corporate performance and studio operations.

Bluepoint's legacy of remakes

Bluepoint built its reputation through meticulous remakes and remasters of PlayStation classics. The studio's portfolio includes God of War Collection, Metal Gear Solid HD Collection, The Ico & Shadow of the Colossus Collection, Uncharted: The Nathan Drake Collection, and Gravity Rush Remastered.

Their most recent project, the 2020 Demon's Souls remake for PS5, showcased the studio's technical expertise in bringing classic games to modern hardware. When Sony acquired Bluepoint in 2021, president Marco Thrush said the studio was 'working on original content' and called it 'the next step in the evolution for us'.

Cancelled projects and industry patterns

Sony cancelled a live service game in development at Bluepoint last year, reportedly based on the God of War series. The studio had subsequently begun hiring for a third-person action game before the closure announcement.

Bluepoint becomes the fourth PlayStation studio shutdown in recent years, following closures of Firesprite, Neon Koi, and Firewalk in 2024. This pattern reflects broader industry restructuring, with major publishers collectively laying off more than 20,000 workers since early 2023 as companies adjust to post-pandemic market conditions.

Supporting affected employees

Hulst emphasised that the decision 'was not made lightly' and praised Bluepoint's contributions. 'Bluepoint is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community,' he wrote. 'Where possible, we will work to find opportunities for some impacted employees within our global network of studios.'

The closure contrasts with previous Sony statements. Following reports of cancelled live service games at Bluepoint and Bend Studio last year, a Sony spokesperson had stated: 'Bend and Bluepoint are highly accomplished teams who are valued members of the PlayStation Studios family.'

Frequently Asked Questions

Why is PlayStation closing Bluepoint Games?

PlayStation is closing Bluepoint Games due to an 'increasingly challenging industry environment,' citing rising development costs, slowed industry growth, changing player behaviour, and broader economic headwinds.

How many employees are affected by Bluepoint Games closure?

Approximately 70 employees will lose their jobs as a result of Bluepoint Games' closure.

What games did Bluepoint Games make?

Bluepoint Games was known for remakes and remasters, including Demon's Souls (PS5 remake), God of War Collection, Metal Gear Solid HD Collection, The Ico & Shadow of the Colossus Collection, Uncharted: The Nathan Drake Collection, and Gravity Rush Remastered.