Sony Shuts Down Bluepoint Games After Less Than Five Years
The celebrated studio behind meticulous remakes of classic titles like “Shadow of the Colossus” and “Demon’s Souls,” Bluepoint Games, is closing its doors, Sony confirmed to Bloomberg on February 19, 2026. The move marks a surprising end to a relationship that began with Sony’s acquisition of the Texas-based developer in 2021. Approximately 70 employees will be impacted by the closure, according to the report.
The decision follows a recent company analysis, and comes after the cancellation of a long-in-development live-service game set within the “God of War” universe earlier last year, Bloomberg reported. Bluepoint’s shuttering adds to a growing trend of studio closures within the gaming industry, raising concerns about job security and the evolving landscape of game development. The news was first reported by Jason Schreier of Bloomberg, and subsequently confirmed by Sony.
A Legacy of Refined Remakes
Bluepoint Games built a reputation for its painstaking and technically impressive remakes and remasters. Before being acquired by Sony, the studio revitalized beloved titles such as “Shadow of the Colossus” and “Demon’s Souls” for PlayStation consoles. These projects were lauded by both longtime fans and newcomers for their visual fidelity and faithful recreation of the original experiences. The 2018 remake of “Shadow of the Colossus” was particularly praised for its stunning graphics and atmospheric presentation, while the 2020 “Demon’s Souls” remake served as a showcase title for the PlayStation 5, demonstrating the console’s graphical capabilities. The studio also remastered the “Metal Gear Solid” HD Collection and “Ico,” further solidifying its position as a leader in the remake/remaster space.
“Bluepoint Games is an extraordinarily talented team, and its technical expertise has delivered outstanding experiences to the PlayStation community,” a Sony spokesperson told Bloomberg. “We thank Bluepoint for its passion, creativity, and craftsmanship.”
The Rise and Fall of Live-Service Ambitions
The cancellation of the “God of War” live-service game appears to have been a pivotal factor in Sony’s decision to close Bluepoint Games. Live-service games, designed to generate ongoing revenue through continuous updates and in-game purchases, have become increasingly popular in the industry, but also carry significant risk. These titles require substantial investment and a dedicated player base to remain profitable. The failure of a live-service project can have significant consequences for the studio involved, as demonstrated by the recent closure of Firewalk Studios.
Firewalk Studios, acquired by Sony just a year prior to its closure in 2024, was shuttered after the unsuccessful launch of the online shooter “Concord,” as reported by Heise Online. This parallel – both Firewalk and Bluepoint working on live-service titles before being closed – suggests a shift in Sony’s strategy and a greater scrutiny of projects that don’t align with its long-term goals. The pursuit of live-service games, while potentially lucrative, is a highly competitive market dominated by established franchises like “Fortnite,” “Counter-Strike,” and “League of Legends,” which continue to attract massive player bases years after their initial release.
Sony had previously announced a strategy to invest more heavily in multiplayer and live-service games, according to Heise Online. But, the recent closures suggest that the company is reevaluating its approach and prioritizing projects with a clearer path to profitability.
Limited Output Since Acquisition
Since being acquired by Sony in the fall of 2021, Bluepoint Games had not released a standalone title. The studio contributed to the development of “God of War Ragnarök,” but Sony Santa Monica led the project. This lack of a major release in the years following the acquisition may have contributed to the decision to close the studio. The cancellation of the “God of War” live-service game further exacerbated the situation, leaving Bluepoint without a clear direction and struggling to define its next project.
The closure of Bluepoint Games raises questions about the future of remakes and remasters in the gaming industry. While Sony continues to invest in new intellectual property and live-service games, the loss of a studio renowned for its dedication to preserving and enhancing classic titles is a significant blow to fans of retro gaming. The studio’s expertise in technical optimization and visual fidelity will be sorely missed.
The gaming industry has seen a wave of layoffs and studio closures in recent months, reflecting a broader economic downturn and a period of consolidation within the sector. The closure of Bluepoint Games serves as a stark reminder of the challenges facing game developers and the increasing pressure to deliver commercially successful titles.
As of February 20, 2026, Sony has not announced any plans to absorb Bluepoint’s remaining staff into other PlayStation Studios. The company has stated that it will provide support to affected employees during the transition. The next major update regarding Sony’s restructuring plans is expected during its quarterly earnings call in late April 2026.
