Blundell and JCbackfire react to Dark Outlaw Games closure on Twitch: 'We were making a hell of a game'

One day after Sony Interactive Entertainment announced the shutdown of its year-old PlayStation studio Dark Outlaw Games, founder Jason Blundell and former level designer JCbackfire discussed the closure on a Twitch stream. They mourned the promising early-stage project—which was not a live-service game—while expressing no ill will toward Sony amid its strategic shifts.

The Twitch stream came after ResetEra user J-Soul first reported the March 24 internal announcement, later confirmed by Bloomberg's Jason Schreier. Blundell, who founded Dark Outlaw last spring following his prior studio Deviation Games' 2024 closure, said of the cancelled project: "You’re gonna mourn what could have been because we were making a hell of a game." He stressed fans would have been excited, attributing the decision to changing priorities: "I can reassure you—and it’s been reassured to me—it’s just times change, focus changes... no ill will." JCbackfire, now unemployed with the team, added: "Long story short, we are unemployed. The sentiment is definitely we’re down but not out." The pair avoided specifics to respect confidentiality, with Blundell noting, "It fucking sucked." The closure aligns with broader Sony challenges, including recent Bluepoint Games layoffs.

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Realistic depiction of Bluepoint Games studio closure, showing office exterior with closure sign, packed boxes, and somber atmosphere.
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Sony to close Bluepoint Games studio in March

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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.

Developers from the recently shuttered Dark Outlaw Games have revealed that their cancelled PlayStation project was not a live-service game, contrary to widespread assumptions. The studio, led by Call of Duty veteran Jason Blundell, was closed by Sony this week. The team attributes the cancellation to broader industry challenges rather than project quality.

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Sony has closed Dark Outlaw Games, a first-party studio founded in 2025 by former Call of Duty producer Jason Blundell, before it could announce its debut PlayStation title. Bloomberg's Jason Schreier reported the shutdown, which followed an internal announcement on Tuesday and aligns with broader PlayStation staff cuts, including mobile development teams, amid Sony's challenges with multiplayer and live-service games.

Wildlight Entertainment has laid off the majority of its team working on the live-service shooter Highguard, just weeks after the game's release, but confirmed that a core group will continue supporting it. Former tech artist Josh Sobel highlighted the toxic online reaction that followed the game's reveal, including personal harassment and review bombing. The studio expressed pride in its work and gratitude to players who engaged with the game.

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Christofer Sundberg, co-founder of Avalanche Studios, stated that the studio's canceled 2009 game AionGuard featured elements similar to those in Crimson Desert. In a recent PC Gamer interview, Sundberg expressed lasting resentment toward the publisher that ended the project via text message. The open-world fantasy title never progressed beyond low-resolution screenshots after its early announcement.

Chicago-based game studio Iron Galaxy has laid off dozens of employees as it adapts to changes in the gaming industry. The announcement follows the release of the Tony Hawk’s Pro Skater 3 + 4 remaster collection. A source indicated the cuts could affect up to 90 staff members.

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Josh Sobel, a former technical artist at Wildlight Entertainment, has reactivated his X account after deactivating it last month amid backlash from a post about Highguard's failure. He stands by the intent of his original comments but regrets the poor phrasing, attributing it to stress following the game's shutdown announcement. Highguard, a 3v3 live-service hero shooter, is set to go offline on March 12, 2026—45 days after its January 26 launch.

 

 

 

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