PlayStation Shuts Down Bluepoint Games, Studio Behind Demon's Souls and Shadow of the Colossus Remakes

PlayStation has shut down Bluepoint Games, the studio best known for high-profile remakes including Demon's Souls and Shadow of the Colossus. The closure, announced in the context of a recent business review, will affect roughly 70 employees and ends a chapter for a team that also contributed support work to major PlayStation projects.

Bluepoint Games — What happened and what’s new

PlayStation confirmed that Bluepoint Games is being closed following a recent business review. The parent company described the studio as an extremely talented team and expressed gratitude for its work. The closure is expected to impact roughly 70 employees when it is carried out next month.

Factors cited in public statements about the decision include the outcome of the business review. Additional context released alongside the closure indicates that Bluepoint had been developing a live-service game set in the God of War universe; that project was canceled in January of 2025 before it was publicly revealed. After that cancellation, the studio spent the following period pitching new projects but did not move a new project into production before the decision to shut it down.

Bluepoint Games was founded in 2006 and joined PlayStation through an acquisition in 2021. The studio earned recognition for its 2018 remake of Shadow of the Colossus and its 2020 remake of Demon's Souls. It also performed co-development and support roles on other PlayStation projects, including assistance on a major title released under PlayStation's umbrella.

Behind the headline

The decision to close Bluepoint Games appears tied directly to organizational priorities identified in the parent company's business review. Bluepoint had become a specialist in high-quality remakes and technical work that other studios relied upon; that capability now will be absent in its existing form. Stakeholders include the studio's employees, PlayStation as the deciding corporate parent, teams that previously collaborated with Bluepoint, and the PlayStation player community that praised the studio's remakes.

In statements, PlayStation thanked the Bluepoint team for its creativity and craftsmanship. The company framed the closure as a difficult but deliberate outcome of its internal review of business needs and priorities.

What we still don’t know

• Exact severance terms, transition assistance, or rehiring plans for the roughly 70 impacted employees are not disclosed.
• Whether any Bluepoint staff will be reassigned to other teams within PlayStation has not been confirmed.
• Detailed findings from the business review that led to the closure have not been released.
• Specific technical assets, proprietary tools, or in-progress work retained by the parent company versus those to be wound down are unconfirmed.
• Further details about the canceled live-service God of War project — scope, scale, and how far it advanced — remain undisclosed.

What happens next

• Internal reassignment: PlayStation could move some Bluepoint employees or assets to other internal studios if it chooses to preserve specific technical skills. Trigger: formal internal staffing announcements or job postings within the company.
• Workforce exits and external hiring: A substantial proportion of the team may enter the broader industry job market. Trigger: public notices from employees or new studio announcements using Bluepoint alumni.
• Asset consolidation: PlayStation may integrate Bluepoint tooling and work into other development groups rather than maintain the studio brand. Trigger: disclosures in corporate filings or subsequent statements about resource allocation.
• Project cancellations remain final: The live-service project in the God of War universe is already described as canceled and will not move forward under Bluepoint. Trigger: absence of the project from future development roadmaps.
• Community and partner responses: Collaborating teams may adjust roadmaps that previously counted on Bluepoint's support. Trigger: project updates from teams that previously worked with the studio.

Why it matters

The closure of Bluepoint Games removes a studio whose technical expertise has been repeatedly leveraged to produce acclaimed remakes and to support other major projects. For players, it means one less dedicated team focused on remastering and technical polish. For PlayStation, the move reflects a re-evaluation of where development resources will be concentrated going forward. In the near term, the most direct impacts are on the affected employees and on any projects that had counted on Bluepoint's capabilities. Over the medium term, the company’s capacity to outsource or internalize high-end remake and port work will be reshaped by how PlayStation reallocates talent and tools from the closed studio.