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Home»News»Features»Editorials»Bluepoint Games Shut Down by Sony Interactive Entertainment in Latest Wave of Industry Cuts

Bluepoint Games Shut Down by Sony Interactive Entertainment in Latest Wave of Industry Cuts

By Keith MitchellFebruary 20, 2026
Sony acquires Bluepoint Games

Yesterday, it was revealed by Bloomberg, that Sony Interactive Entertainment has shut down Bluepoint Games, as of March 2026, will no longer exist, and I am not going to pretend that this does not frustrate me.

This closure reportedly impacts around 70 people, and that number matters. Seventy developers, artists, engineers, designers, and support staff are now affected during a time when we have already seen far too many studios shut down across the industry. Layoffs and closures have become an almost constant headline, and each one chips away at the sense of stability that used to exist in game development.

Per multiple sources, this is what Herman Hulst, the CEO of the Studio Business Group at Sony Interactive Entertainment, had to say on the matter:

At the same time, we’re operating in an increasingly challenging industry environment. Rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds are making it harder to build games sustainably. To navigate this reality, we need to continue adapting and evolving. We’ve taken a close look at our business to ensure we’re delivering today while still well-positioned for the future. As a result, we will be closing Bluepoint Games in March.”

This feels like a slap in the face. Bluepoint delivered critically acclaimed single-player experiences that players consistently showed up for, helping reinforce the very reputation PlayStation was built on. Yet it’s being shut down in pursuit of a live-service strategy that audiences have repeatedly pushed back against. Calling it “business adaptation” may sound strategic, but to many fans, it feels disconnected from what made PlayStation successful in the first place.

This is the studio took the original Demon’s Souls title and rebuilt it from ground with Demon’s Souls Remake for the PlayStation 5, delivering one of the most technically impressive launch titles of the generation while preserving the identity of the original.

This is also the team that reimagined Shadow of the Colossus for PlayStation 4, proving that remakes can modernize a classic without stripping away what made it special. Let’s also not forget about the Uncharted: The Nathan Drake Collection, and Gravity Rush Remastered, bringing over a favorite of mine that was only available on the PS Vita. It goes without saying that Bluepoint was a master of its craft. And yet, because PlayStation needed to balance some books, or recoup some cash thanks to a bunch of bad decisions, Bluepoint Games is out the door.

What makes this sting more is that when PlayStation acquired Bluepoint in 2021, I was not celebrating. I remember thinking that folding a strong third-party studio into a company like PlayStation would cause it to get lost. To become a cog in a machine that simply wouldn’t appreciate it. Bluepoint had independence before, and once that acquisition happened, that independence was gone.

Demons Souls remake for PS5

We have seen this pattern too many times. A talented studio gets absorbed, priorities shift, and suddenly even proven teams become expendable. Bluepoint was not struggling. It had a clear lane and executed it exceptionally well. If that kind of consistency is not enough to survive under a first-party banner, then it raises serious questions about what actually guarantees longevity in this industry.

Beyond the brand implications, this is about the people behind the games. Bluepoint’s team mastered their craft and delivered some of PlayStation’s most memorable modern experiences, and that level of expertise does not just disappear because a corporate decision was made.

I sincerely hope everyone impacted lands on their feet, and even more than that, I hope they find a way to build something new together again. The talent inside Bluepoint did not vanish with the studio name, and developers of that caliber deserve another opportunity to show why they were trusted in the first place.

Bluepoint Games playstation
Keith Mitchell - Headshot-PS_Gear_400x400
Keith Mitchell
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Keith D. Mitchell is the Founder and Editor-in-Chief of The Outerhaven, covering games and tech for over 14 years. A lifelong PC gamer who began building PCs at age eight, he is a hardware enthusiast, Soulslike devotee, and regular attendee of major gaming and technology events.

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