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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Microsoft is reportedly considering the closure of Arkane Studios along with four other studios as part of a broad reset of its Xbox division. The changes could also result in the cancellation of the Marvel's Blade game.

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Two former Rocksteady Studios designers have discussed the challenges they faced during the extended development of Suicide Squad: Kill the Justice League. Axel Rydby and Johnny Armstrong spoke about shifting priorities and the difficulties of pivoting to a live service model. They are now developing an indie deckbuilding game called Secret of Circadia.

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.

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Xbox is preparing to shut down Compulsion Games and is in talks to close Double Fine and Ninja Theory as well. Studio leaders are negotiating with Microsoft over the studios' futures. Heavy job losses are expected even if some studios go independent.

Quantic Dream is shutting down its free-to-play MOBA Spellcasters Chronicles after it failed to attract enough players. The studio will reorganize but has confirmed that development of Star Wars Eclipse continues unaffected.

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Liana Ruppert, a former Bungie community manager, stated that the studio faced severe financial trouble before its acquisition by Sony. She described the 2022 deal as an emergency move to prevent closure of Destiny operations.

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