Bluepoint Games is reportedly being shut down by Sony following canceled live-service project

The studio behind Demon's Souls and Shadow of the Colossus remakes gets axed.

(Image via Bluepoint)
TL;DR
  • Jason Schreier reports Sony is shutting down Bluepoint Games, the studio behind Demon's Souls and Shadow of the Colossus remakes.
  • The closure follows cancellation of a multiplayer God of War project that Bluepoint was developing as part of Sony's live-service push.
  • Bluepoint employed around 70 people and was acquired by Sony in 2021, making this a quick turnaround from acquisition to shutdown.
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Jason Schreier reports that PlayStation is shutting down Bluepoint Games. The veteran Bloomberg reporter broke the news as part of Sony’s ongoing retreat from its live-service push.

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

Bluepoint is the Texas-based studio that built its reputation on technically impressive remakes. Their PS5 launch title Demon’s Souls was widely praised as a visual showcase for the new hardware. Before that, they delivered the Shadow of the Colossus remake for PS4 and the Uncharted: The Nathan Drake Collection.

Sony acquired Bluepoint in 2021 for an undisclosed amount. At the time, it seemed like a smart move to secure one of the industry’s best remake specialists.

The shutdown reportedly follows the cancellation of a multiplayer God of War project. According to earlier reports, Bluepoint had been assigned to develop a live-service entry in the God of War franchise. That project was scrapped, and the studio apparently had no backup work lined up.

The timing is particularly brutal. Bluepoint is a small team of around 70 people. They also provided support work on God of War Ragnarök, making their sudden closure even more surprising given their recent contributions to one of PlayStation’s flagship series.

Sony launched an aggressive live-service initiative in the early 2020s, aiming to diversify beyond big-budget single-player games. That strategy has largely backfired. Multiple projects have been canceled across PlayStation Studios, and the few that launched faced mixed reception at best.

The loss of Bluepoint leaves a significant gap in PlayStation’s development pipeline. The studio was uniquely positioned to handle prestige remakes of beloved franchises. Projects that fans have requested for years—like a Bloodborne remake or remaster—now seem less likely without Bluepoint’s technical expertise.

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