PlayStation closes Dark Outlaw Games, Jason Blundell's second studio shutdown

PlayStation has shut down Dark Outlaw Games, the studio founded just one year ago by former Call of Duty Zombies lead Jason Blundell, according to VGC reports. Around 50 people are being laid off as part of Sony's latest cuts, according to journalist Jason Schreier. The closure marks the second time Sony Interactive Entertainment has parted ways with Blundell, after his previous studio Deviation Games cancelled a PlayStation project and closed in 2024.

What this means for PlayStation's studio strategy

Dark Outlaw's closure represents a troubling pattern for PlayStation's studio partnerships. According to industry sources, the studio was in early development on an unannounced project before Sony made the decision to shut it down. This marks PlayStation's second studio closure in two months, following the recent shutdown of Bluepoint Games.

For context, Blundell previously worked at Treyarch for 13 years as co-studio head before leaving Activision in 2020. He was instrumental in creating Call of Duty's popular Zombies mode, which has generated billions in revenue for the franchise. His track record made him an attractive partner for PlayStation's expansion efforts.

Industry challenges driving studio closures

In a message to staff explaining the Bluepoint closure, PlayStation's studios boss Hermen Hulst outlined the broader industry challenges affecting Sony's decisions. "Rising development costs, slowed industry growth, changing player behaviour, and broader economic headwinds are making it harder to build games sustainably," Hulst wrote.

These challenges aren't unique to PlayStation. The gaming industry has seen massive layoffs across major publishers, with Epic Games cutting over 1,000 jobs and EA reducing staff at Battlefield studios despite record sales. The trend reflects a post-pandemic correction after years of aggressive hiring.

"To navigate this reality, we need to continue adapting and evolving," Hulst added. "We've taken a close look at our business to ensure we're delivering today while still well-positioned for the future."

Jason Blundell's troubled PlayStation history

This closure represents Blundell's second failed partnership with Sony in as many years. His previous studio, Deviation Games, secured a high-profile deal to develop an original IP for PlayStation before the project was cancelled and the studio closed in 2024.

The pattern suggests potential misalignment between Blundell's vision and Sony's current strategic priorities. While his expertise in live-service games like Call of Duty Zombies seemed valuable, PlayStation has been scaling back its live-service ambitions following several high-profile failures.

Frequently Asked Questions

Why did PlayStation close Dark Outlaw Games?

PlayStation's studios boss Hermen Hulst cited an increasingly challenging industry environment, including rising development costs, slowed industry growth, changing player behaviour, and broader economic headwinds making it harder to build games sustainably.

Who is Jason Blundell?

Jason Blundell is the former Call of Duty Zombies lead who founded Dark Outlaw Games. He previously worked at Treyarch and Activision for 13 years as co-studio head before leaving in 2020.

How many people were laid off from Dark Outlaw Games?

According to journalist Jason Schreier, around 50 people are being laid off as part of Sony's latest cuts, including staff from Dark Outlaw Games.

Which other studios has PlayStation closed recently?

Dark Outlaw Games is the second studio Sony Interactive Entertainment has closed in two months, following the shutdown of Bluepoint Games. Blundell's previous studio, Deviation Games, also cancelled a PlayStation project and closed in 2024.

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