Sony Shuts Down Bluepoint Games, Developer of Demon’s Souls Remake

Sony has officially shut down Bluepoint Games, the PlayStation studio known for its high-end remakes of classic titles. The closure affects roughly 70 employees and will take effect next month.

The news first surfaced through a report by Bloomberg journalist Jason Schreier, who revealed that Sony made the decision following a recent business review .

This marks a shocking end for one of the most respected remake specialists in the industry.

A Studio Known for Premium Remakes

Bluepoint built its reputation on technically ambitious remakes that preserved the soul of beloved classics while modernizing them for new hardware.

The studio delivered the critically acclaimed remake of Demon’s Souls for PlayStation 5 and previously rebuilt Shadow of the Colossus for PlayStation 4.

Sony acquired Bluepoint in 2021 after the success of Demon’s Souls and integrated the Austin-based team into PlayStation Studios. The studio later assisted with development on God of War Ragnarök, further strengthening its internal role within the company.

Expectations ran high. Many fans believed Bluepoint would continue modernizing iconic PlayStation franchises.

The Canceled God of War Live-Service Project

After God of War Ragnarök, Bluepoint began work on a live-service project set in the God of War universe.

However, Sony canceled that project in early 2025 as the company scaled back its live-service strategy. Following the cancellation, Bluepoint reportedly spent the past year pitching new ideas while waiting for a green light on its next major project .

Instead of securing a new direction, the studio now faces full closure.

Sony’s Official Statement

A PlayStation spokesperson confirmed the shutdown and praised the studio’s contributions:

“Bluepoint Games is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community. We thank them for their passion, creativity and craftsmanship.”

Despite the praise, the decision leaves approximately 70 developers without roles .

Bluepoint’s closure raises serious questions about Sony’s current studio strategy.

The company aggressively expanded its first-party lineup in recent years, investing heavily in live-service projects. Several of those projects have since been canceled. Bluepoint’s shutdown suggests Sony is tightening operations and reducing risk after reevaluating its development pipeline.

For fans, the loss hits hard. Bluepoint consistently delivered technically polished remakes that respected the source material. Many players hoped the studio would eventually tackle other fan-favorite classics.

Now, that possibility disappears.

BREAKING: PlayStation is shutting down Bluepoint Games, the studio responsible for modern remakes of classic games such as Demon's Souls and Shadow of the Colossus, Bloomberg News has learned.A shocking end for a well-respected studio.

Jason Schreier (@jasonschreier.bsky.social) 2026-02-19T18:45:17.298Z

The closure adds to a growing list of layoffs and restructurings across the gaming industry in 2025 and 2026. Even studios with strong reputations and successful releases are not immune to corporate strategy shifts.

Bluepoint’s track record made it appear stable from the outside. Its shutdown proves that even technically elite teams can face abrupt endings under large corporate ownership.

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