Report Details Studio's Unexpected Closure and Fan Reaction
Sony has made the decision to shut down Bluepoint Games, the Austin-based studio responsible for popular remakes like Demon's Souls and Shadow of the Colossus. The news, first reported by Bloomberg, has sent shockwaves through the PlayStation community, with many fans expressing dismay. The closure will result in approximately 70 employees losing their jobs. Bluepoint Games was acquired by Sony in 2021 and became part of PlayStation Studios.

Bluepoint Games: A History of Polished Remakes
For two decades, Bluepoint Games has been known for its work on PlayStation titles. Their portfolio includes acclaimed remakes and remasters, showcasing a talent for updating classic games for modern hardware.

Shadow of the Colossus (PS4 Remake)
Demon's Souls (PS5 Remake)
The studio also co-developed God of War: Ragnarok with Sony Santa Monica. Most recently, Bluepoint had been working on a new third-person action game, hiring staff for the project.

Reports Indicate Live-Service Game Cancellation Preceded Closure
Multiple reports suggest that the closure of Bluepoint Games follows the cancellation of a live-service project the studio was developing. This game was reportedly a God of War live-service title, green-lit as part of a broader push by Sony into multiplayer experiences. This move by Sony has been described as a "pivot to live service."
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Bend Studio, another developer under the PlayStation umbrella, was also working on a live-service project that was reportedly canceled around the same time.
Earlier in the year, Sony shut down the servers for Concord, a multiplayer shooter, just two weeks after its release.
Following Concord's performance, Firewalk Studios, the developer of that game, was also reportedly closed.
A spokesperson for PlayStation stated to Bloomberg that Bluepoint Games is an incredibly talented team and that their expertise has delivered exceptional experiences. The spokesperson expressed thanks for their passion, creativity, and craftsmanship. The closure is slated to occur in March.
Studio's Future Projects and Hiring Activity
In the year leading up to the closure announcement, Bluepoint Games had been actively seeking new talent. Reports indicate they were hiring for positions related to a third-person action game. It remains unclear whether the studio had pitched original game ideas or was seeking to develop a new intellectual property.
Community and Expert Reactions
The closure has elicited strong reactions from fans who have come to value Bluepoint's expertise in creating high-quality remakes. The studio's work on titles like Demon's Souls was particularly lauded as a launch showcase for the PlayStation 5.
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"Bluepoint Games is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community." - PlayStation Spokesperson (via Bloomberg)
Evidence of Closure and Related Events
Bloomberg reported on the closure, with other major outlets like IGN, Push Square, Beebom, Metro, PC Gamer, Engadget, and VGC subsequently confirming the news.
The closure is set to happen in March.
Approximately 70 employees are affected.
The studio was reportedly working on a God of War live-service game that has since been canceled.
Sony's recent strategy has involved a "pivot to live service," which has seen mixed results, including the closure of Firewalk Studios after the underperformance of Concord.
Bluepoint Games was reportedly hiring for a third-person action game in recent months.
Sources
Sony Makes Shocking Decision to Shut Down Bluepoint Games: https://www.pushsquare.com/news/2026/02/sony-makes-shocking-decision-to-shut-down-bluepoint-games
PlayStation Shutters Bluepoint Games, Studio Behind Demon's Souls and Shadow of the Colossus Remakes: https://beebom.com/playstation-shutting-down-bluepoint-games/
Fans shocked as Sony shuts down Demon’s Souls remake developer Bluepoint Games: https://metro.co.uk/2026/02/19/fans-shocked-sony-shuts-demons-souls-remake-developer-bluepoint-games-27003182/
Bluepoint Games, Sony's famed remaster studio, is being closed as the fallout from PlayStation's disastrous pivot to live service continues: https://www.pcgamer.com/gaming-industry/bluepoint-games-sonys-famed-remaster-studio-is-being-closed-as-the-fallout-from-playstations-disastrous-pivot-to-live-service-continues/
Sony is shutting down the studio behind the Demon's Souls remake: https://www.engadget.com/gaming/playstation/sony-is-shutting-down-the-studio-behind-the-demons-souls-remake-195234213.html
PlayStation Shuts Down Demon's Souls, Shadow of the Colossus Remake Studio Bluepoint Games - IGN: https://www.ign.com/articles/playstation-shuts-down-demons-souls-shadow-of-the-colossus-remake-studio-bluepoint-games
Sony is shutting down Bluepoint, developer of Demon’s Souls remake | VGC: https://www.videogameschronicle.com/news/sony-is-shutting-down-bluepoint-developer-of-demons-souls-remake/