Dark Outlaw Games' cancelled PS5 project was not live-service

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.

Sony shut down Dark Outlaw Games on Wednesday, ending development on an unannounced PlayStation 5 project just a year after the studio's founding. The team was headed by Jason Blundell, a veteran of the Call of Duty series. While many speculated the project was a live-service title amid Sony's recent retreat from such ambitions, developers clarified otherwise during a Twitch stream with junior game designer JCBackfire and Blundell, as first reported by Eurogamer.net. JCBackfire expressed enthusiasm for the project, stating he 'loved the type of project' and was 'stoked about' the fact that 'it wasn't a live-service game'. Blundell echoed this sentiment, noting that 'times change, focus changes, but the project we were doing and what we were doing… I think fans would have been very excited.' He added wryly, 'The best game is the one you never play.' The developers described the closure as painful but understandable, blaming a 'tough business environment and industry stuff' rather than any flaws in the game itself. They expressed no resentment toward PlayStation. This follows other Sony studio closures, including Firewalk after its live-service shooter Concord was pulled offline two weeks after its 2024 launch on PC and PS5. More recently, Bluepoint Games—known for the Demon's Souls remake and Uncharted: The Nathan Drake Collection—was also shuttered.

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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.

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.

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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.

A laid-off developer from Wildlight Entertainment's Highguard has deleted a social media post criticizing toxic reactions to the game after its reveal and launch. Josh Sobel, who worked on the multiplayer shooter, faced backlash for suggesting that online negativity contributed to its poor reception. The post, shared shortly after studio layoffs, highlighted the immediate hate following the Game Awards 2025 trailer.

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Industry insiders indicate that Sony is reducing PC releases for its single-player PS5 games, potentially leaving titles like Wolverine exclusive to consoles. This strategic pivot, decided last year, prioritizes the PlayStation ecosystem over broader platform support. The move follows mixed results from previous PC ports.

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.

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John Romero, co-creator of Doom and Quake, has announced that his studio's canceled first-person shooter project is back on track following a complete redesign. The unnamed game, impacted by earlier funding cuts, is now a smaller indie title incorporating elements from its original concept. Romero shared these updates at Salón del Videojuego de Madrid, hinting at innovative gameplay inspired by Elden Ring.

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