Sony Interactive Entertainment has announced the closure of Bluepoint Games, an American studio renowned for top-tier remasters and remakes. The decision, made after an internal business audit, involves laying off approximately 70 employees. The Austin, Texas-based studio, responsible for successes such as 'Demon's Souls' and 'Shadow of the Colossus', is set to be permanently shut down by March 2026.
Liquidation of Bluepoint Games
Sony officially closes the studio responsible for Demon's Souls and Shadow of the Colossus, citing business aspects and costs.
Massive Job Cuts
Around 70 employees in Austin will lose their jobs by March 2026 as part of a broad Sony restructuring.
Change in Sony's Strategy
The decision was made after an internal review, suggesting optimization of the portfolio of development studios owned by the giant.
Japanese giant Sony Group Corp. has made a radical decision to wind down the operations of its subsidiary, Bluepoint Games. The studio's work will be halted by March 2026, following the latest profitability assessment and strategic restructuring within Sony Interactive Entertainment. This decision will directly affect around 70 specialists who will lose their jobs at the Austin office. Representatives of the conglomerate, including Hermen Hulst, emphasized the team's undeniable talent but pointed to the insufficient cost efficiency of the studio's current business model in the face of rising expenses for high-budget title production. Bluepoint Games, founded in 2006, built its reputation over the years as masters of refreshing classics, reaching the peak of technical capabilities with the production of the PlayStation 5 launch hit, the remake of 'Demon's Souls'. The studio's liquidation comes just a few years after its official acquisition by Sony in 2021. In an official statement, a spokesperson for PlayStation Studios conveyed that the decision was made after a "thorough operational analysis". Industry analysts point to a concerning trend in the video game sector, where even artistic successes do not guarantee a secure future for developers. Bluepoint Games was valued for its proprietary engine technology, which allowed for faithful transfers of iconic productions to modern hardware platforms while preserving the unique atmosphere of the originals. „Bluepoint Games is an incredibly talented team whose technical expertise has provided the PlayStation community with exceptional experiences.” — Sony Spokesperson 70 — employees will lose their jobs as a result of the studio's closure The move away from a remake-based model may suggest a shift in Sony's strategy towards consolidating resources around its largest own brands. Although Bluepoint's productions were acclaimed by critics and players, the high costs of maintaining the development team in the United States outweighed the image benefits. Industry media such as Bloomberg and The Verge note that this is another stage in the wave of layoffs that has been affecting the global digital entertainment market since the beginning of last year. [{"dateISO": "2026-02-19", "date": "February 19, 2026", "event": "First Bloomberg reports on the closure"}, {"dateISO": "2026-02-20", "date": "February 20, 2026", "event": "Official confirmation of the decision by Sony"}, {"dateISO": "2026-03-31", "date": "March 31, 2026", "event": "Planned final closure of the Austin offices"}]
Mentioned People
- Hermen Hulst — Head of PlayStation Studios and leader of strategic actions at Sony Interactive Entertainment.