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.

Build A Rocket Boy has announced further layoffs—the third round since MindsEye's launch—attributing them to industry woes and alleging organized espionage and sabotage. Co-CEO Mark Gerhard said the studio's investigation into these claims is progressing toward prosecution.

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Obsidian Entertainment's 2025 releases Avowed and The Outer Worlds 2 received positive reviews but fell short of sales expectations, while Grounded 2 proved a major success. Studio head Feargus Urquhart described the RPGs' results as disappointing yet instructional, prompting reflections on development cycles. The company now aims for shorter timelines and has no plans for The Outer Worlds 3.

NetEase has notified Nagoshi Studio it will stop funding from May 2026 for its debut game Gang of Dragon, after the studio requested an additional ¥7 billion ($44.4 million) to complete the project unveiled at The Game Awards 2025. The studio may continue independently if it secures alternative funding and negotiates to buy back IP rights.

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An interview with former Blizzard developer Chris Sigaty at Dreamhaven highlights the struggles of the RPG Sunderfolk, which faced a poorly timed launch last year. The discussion covers what went wrong, upcoming changes, and unexpected successes.

 

 

 

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