An internal memo from Sony has revealed they are to shut down Bluepoint Games, the developer responsible for the remasters of Shadow of the Colossus. Uncharted, and Gravity Rush on PS4, and the Demon Souls remake for PS5.

Bluepoint had been working on a live service game, but this was cancelled in January 2025. Sony bought Bluepoint in 2021, and they have never released a game as a PlayStation studio, although they did work on God of War Ragnarok.

Here is the email in full:

In a recent Bloomberg report, Sony Interactive Entertainment confirmed that it will shut down Bluepoint Games, the developer behind the Demon’s Souls and Shadow of the Colossus remakes. The studio will close in March. Bluepoint Games was acquired by Sony in September 2021, about a year after the release of the Demon’s Souls remake. Following the acquisition, the studio worked as a co-developer on God of War Ragnarok and was also involved in an unannounced God of War live-service game, which was canceled in January 2025.

 

The full email to employees regarding the studio closure from Sony from Sony Interactive Entertainment Studio Business Group CEO Hermen Hulst:

Hello everyone,

I wanted to share an important 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 II 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, craftsmanship, 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 fiscal year 26, with much to look forward to in the months ahead.

Thank you for your hard work and continued support.

Best,

Hermen Hulst

CEO, Studio Business Group

The post Sony Interactive Entertainment Will Shut Down Bluepoint Games appeared first on Gaming Instincts - Next-Generation of Video Game Journalism.

The closure of Bluepoint Games by Sony came as a shock to many in the industry, and understandably so. However, aside from the publisher reportedly seeking to accommodate the roughly 70 former employees into new roles in PlayStation Studios, other developers have begun reaching out. That includes CI Games, the publisher for Lords of the Fallen.

On Twitter, founder and CEO Marek Tyminski said, “The Demon’s Souls remake was an incredible achievement, and we’d be honoured to speak with the talented people behind it about opportunities on Lords of the Fallen 2 and beyond. We have multiple roles available, including some not yet listed on our website.

“If this speaks to you or someone you know, please reach out today – we’d love to hear from you and explore how your skills could help shape our next chapter.”

Besides serving as an incredible gesture for those affected, Tyminski’s statement is notable for the “and beyond” part. Granted, this could mean several things, from DLC to post-launch support. Following its release, Lords of the Fallen (2023) received dozens of updates that added new modes, features, difficulty options, and extensive revamps of the combat.

Bluepoint developers may also lend their expertise for optimization. All of its games have been a masterclass in the same, especially the Demon’s Souls remake, while delivering some of the best graphical fidelity out there. Given the performance problems that Lords of the Fallen launched with, it might help to get that talent on board to prevent the same issues with the sequel.

Lords of the Fallen 2 launches later this year for Xbox Series X/S, PS5, and PC. You can check out the latest details here, including improvements to the animations, world design and dual-wielding.

We'd like to invite any developers impacted at Bluepoint Games to contact us – careers@cigames.com.

The Demon’s Souls remake was an incredible achievement, and we’d be honoured to speak with the talented people behind it about opportunities on Lords of the Fallen II and beyond.… https://t.co/zJnf5spcfx

— Marek Tyminski (@tyminski_marek) February 20, 2026

In a surprising move, PlayStation has shut down one of its most beloved studios behind some early PlayStation 5 launch titles and known for producing some incredible work.

What studio is PlayStation shutting down?

Bluepoint Games, the Sony-owned studio that became known for producing several high-quality remasters including Shadow of the Colossus and Demon’s Souls, has been shut down by Sony. News of the shut down was first reported by Bloomberg’s Jason Schreier, who noted that roughly 70 people will lose their jobs as a result of the studio’s closure.

In a statement to Bloomberg, PlayStation confirmed the closure, which says the news came “following a recent business review.” The spokesperson for PlayStation also praised Bluepoint in their work for PlayStation. “Bluepoint Games is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community,” the spokesperson said. “We thank them for their passion, creativity and craftmanship.”

Bluepoint Games, founded in 2006 in Austin, Texas, was best known for developing several high-end remakes of older games. Sony acquired the company in 2021, right after the release of Demon’s Souls, which was a PS5 launch title.

The company then did additional co-developing work on 2022’s God of War Ragnarök and was reportedly working on a live-service game set in the God of War franchise, which was subsequently canceled in 2025.

As of now, Bluepoint Games has not made any remarks on the move, and it’s unclear what the future holds for those who worked at the studio. It’s also unclear what, if any, project they were working on for Sony prior to their closure. Most reports in 2025 suggested the company was pitching and working with Sony on their next direction following the cancellation of the God of War live-service game.

(Source: Bloomberg)

The post PlayStation Shockingly Shuts Down Beloved First-Party Studio Making PS5 Games appeared first on PlayStation LifeStyle.

Seemingly out of nowhere, Sony has closed its first-party studio Bluepoint Games, which was known for developing the PS5's launch title, Demon's Souls Remake. Over 70 developers will lose their jobs as a result, with Sony issuing only a blunt remark in a brief corporate statement.

This closure comes after Sony performed a "business review" recently, though the exact reasoning is still unclear. Sony only briefly commented on the matter in a statement issued to Bloomberg, where they thanked the studio's employees and described them as an "incredibly talented team" that has "delivered exceptional experiences for the PlayStation community."

The sudden closure of Bluepoint has drawn a lot of criticism from fans of the studio, who've compared the situation with Microsoft's shutdown of Tango Gameworks. Though Tango was saved from total collapse by Krafton, it seems Bluepoint will be going away for good, which some players couldn't explain: "Why not just let the studio go independent again?" one Reddit user questioned.

Others blamed Sony's management, or rather the lack thereof, believing Bluepoint had some of the most talented developers of all the studios working under Sony's first-party umbrella.

At any rate, it's certainly a loss for gamers.

Bluepoint Games was founded in 2006 and was best known for working on remasters and remakes of popular franchises, bringing them up to date with modern standards. Its most notable projects include Uncharted: The Nathan Drake Collection, Shadow of the Colossus remake, and the PS5 launch title, Demon's Souls Remake.

The post Sony goes all ‘I don’t recall saying goodbye’ with shock shutdown of Demon’s Souls remake studio Bluepoint Games appeared first on Destructoid.

Not sure if you'd be happy or sad that this never happened.

Apparently the game was too big for them to handle.

We've been surprised by video game studio closures before, like when Xbox shut down Arkane Austin and Tango Gameworks, but this latest studio closure is arguably the most shocking one we've seen in a long time. Bluepoint Games, the studio responsible for the Demon's Souls Remake and decades of remakes and remasters across several iconic franchises, is being shut down by PlayStation. It was Bloomberg's Jason Schreier who broke the news that just five years after the studio officially joined the PlayStation Studios family, its remaining 70 developers are losing their jobs in what is yet another baffling decision by […]

Read full article at https://wccftech.com/playstation-shutting-down-bluepoint-games/

An internal memo from Sony has revealed they are to shut down Bluepoint Games, the developer responsible for the remasters of Shadow of the Colossus. Uncharted, and Gravity Rush on PS4, and the Demon Souls remake for PS5.

Bluepoint had been working on a live service game, but this was cancelled in January 2025. Sony bought Bluepoint in 2021, and they have never released a game as a PlayStation studio, although they did work on God of War Ragnarok.

Here is the email in full:

Bluepoint Games, an American studio specialising in remakes like the God Of War Collection, the Ico & Shadow Of The Colossus bundle, Uncharted Collection and Demon's Souls, has been shut down by Sony after five years of ownership, during which time the company did not release a single remake, with Bloomberg reporting that "roughly 70 employees will lose their jobs" as a result.

Having worked closely with PlayStation for over a decade (the God of War Collection was released in 2009), Sony decided to buy Bluepoint in 2021 and bring them in-house, after which they were promptly...set to work as a support studio on God of War Ragnarok, before then being assigned a live-service God of War game, before that project was cancelled in January 2025.

And today they're done. The studio, first founded in 2006, will be shut down next month. In an internal email sent to PlayStation staff (shared on resetera), Sony Interactive Entertainment Studio Business Group CEO Hermen Hulst says:

...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, craftsmanship, and commitment to quality. Where possible, we will work to find opportunities for some impacted employees within our global network of studios.

I have seen some gross acts of mismanagement in my time covering this industry--it feels like the last three to four years have been nothing but--yet this one somehow feels like the worst. Bluepoint was a studio with a very clear speciality and a very successful track record: they took old PlayStation hits, gave them an update and sold them to new generations of fans.

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For PlayStation themselves to buy Bluepoint, not use them for the one thing they would have bought them for and now close them down is just the most colossal waste. It's industry vandalism, at scale. Former PlayStation boss Jim Ryan, who had live-service game brainworms (see below), deserves some of the scorn here, but the current regime--who have made the decision to close Bluepoint instead of finding something, anything from PlayStation's vast back catalogue for them to work on instead--are equally to blame.

Not pulling this outta my ass either, here's something from Sony's 2022 investor/press thing, where they promised 12 Live Services by 2025. Aside from Helldivers, none of that is paying off, and that was under Jim Ryan who left before shit predictably hit the fan. www.sony.com/en/SonyInfo/...

— Casey Explosion (@caseyexplosion.bsky.social) 2026-02-19T19:56:48.644Z

If you were wondering how the rest of PlayStation’s recent purchases were going, the answer is: they’re not doing great either.

Despite calling Bluepoint Games "an incredibly talented team" full of "technical expertise" which has "delivered exceptional experiences for the PlayStation community", Sony has decided to shut the studio down.

Read more

Bungie's upcoming live-service first-person sci-fi shooter is landing at the worst possible time following Bluepoint's reported shutdown

Sony is shutting down Bluepoint Games, known for remaking classics like Demon's Souls. This decision impacts 70 employees and raises questions about Sony's direction, especially amid recent announcements regarding new remakes.