Sony Interactive Entertainment is shutting down Bluepoint Games, the studio behind acclaimed PlayStation remakes, just five years after acquiring it. The closure, announced in an internal memo from co-CEO Hermen Hulst, cites rising development costs and industry challenges. The Texas-based team, known for Demon’s Souls and Shadow of the Colossus, will cease operations next month.
Bluepoint Games, acquired by Sony in 2021, is set to close in March 2026, according to an internal message from PlayStation Studios co-CEO Hermen Hulst shared with staff on February 19, 2026. The memo, viewed by Kotaku, highlights the studio's contributions, stating, “Bluepoint is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community.”
Founded in 2006, Bluepoint gained prominence for remaking PlayStation classics, including the 2020 PS5 launch title Demon’s Souls, which sold 1.4 million copies in its first year, and the 2018 PS4 remake of Shadow of the Colossus. The studio also supported development on 2022’s God of War Ragnarök and handled ports like The Ico & Shadow of the Colossus Collection for PS3 and Gravity Rush for PS4. Its first game was the 2006 PSN title Blast Factor.
Despite these successes, Bluepoint was reassigned to a live-service multiplayer spin-off of God of War, which was canceled in early 2025. Hulst attributed the closure to “an increasingly challenging industry environment,” including rising costs, slowed growth, changing player behavior, and economic pressures. The decision follows Sony's 2025 highlights, such as the launches of Ghost of Yotei and Death Stranding 2: On the Beach, amid ongoing engagement from Helldivers 2 and MLB The Show.
The studio employed around 70-75 people, with Sony planning to reassign some to other studios where possible. This marks the third closure of a recently acquired studio by Sony in under two years, including Neon Koi in 2024 and Firewalk Studios after the 2024 flop of Concord. Sony's gaming division reported a 19% profit increase last quarter, despite year-over-year sales declines, and upwardly revised its forecast.
The closure comes amid broader struggles in Sony's post-2019 acquisition spree of over 10 studios, many pivoted unsuccessfully to live-service games, leading to layoffs and limited new releases.
