Sony will close Bluepoint Games, the studio behind the remakes of Demon’s Souls and Shadow of the Colossus, in March, according to a report from Bloomberg.
Sony bought Bluepoint Games in September 2021, shortly after the successful release of their remake of Demon’s Souls. Since then, Bluepoint assisted in the development of God of War Ragnarok. Although they haven’t released a standalone game since being acquired, a live service game Bluepoint was working on was canceled in January 2025. Reports suggest this canceled project was a God of War game that started development in 2022.
Here’s the complete email sent to employees by Hermen Hulst, CEO of Sony Interactive Entertainment Studio Business Group, regarding the studio’s closure, as shared on ResetEra.
Hello everyone,
I wanted to share an important update from the Studio Business.
As I shared during the December Town Hall, 2025 was a great year for PlayStation Studios. Ghost of Yotei was a hit with both critics and players, Death Stranding 2: On the Beach demonstrated our dedication to strong storytelling, and Helldivers II and MLB The Show continue to keep players engaged and generate revenue.
The gaming industry is becoming more difficult to navigate. Increasing development expenses, slower growth overall, shifts in how players engage with games, and a tougher economic climate are all making it harder to create games that can thrive long-term.
Things are changing quickly, so we’re constantly working to improve and prepare for what’s next. After carefully reviewing our business, we’ve made the difficult decision to close Bluepoint Games in March. This will help us focus on future opportunities and continue delivering great experiences.
Honestly, this was a really tough decision. Bluepoint is just an amazing team – seriously talented and they’ve consistently delivered incredible games for PlayStation fans like me. I really want to express my gratitude to everyone at Bluepoint for their passion, skill, and dedication to making top-notch experiences. We’re doing everything we can to see if we can find new roles for some of the people affected within our other PlayStation studios.
I understand this news may be disappointing, but I’m optimistic about our future. PlayStation Studios will continue to focus on creativity, innovation, and delivering amazing experiences for players. We have a strong plan for the next year, and there’s a lot to be excited about.
Thank you for your hard work and continued support.
Best,
Hermen Hulst
CEO, Studio Business Group
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2026-02-19 22:16