Sony shuts Bluepoint Games: 70 jobs lost as 3 of 11 studios acquired since 2019 close after live-service pivot

Sunita Somvanshi

Screenshot from Bluepoint Games portfolio showcasing the studio's game development work on console platforms before the March 2026 closure affecting 70 employees

Sony Interactive Entertainment confirmed the closure of Bluepoint Games, the Austin-based studio renowned for creating high-quality remakes of PlayStation classics. The decision affects roughly 70 employees and follows what a PlayStation spokesperson described as “a recent business review.” The studio will officially shut down in March 2026.

Founded in 2006, Bluepoint Games built a reputation over nearly two decades for technical excellence in remastering and remaking classic titles. The studio’s portfolio includes critically acclaimed projects such as Shadow of the Colossus, Demon’s Souls, Uncharted: The Nathan Drake Collection, and God of War Collection. Sony acquired Bluepoint in September 2021, shortly after the successful launch of the Demon’s Souls remake as a PlayStation 5 exclusive.

Following the acquisition, Bluepoint contributed to God of War Ragnarök before being assigned to develop a live-service title set in the God of War universe. That project was canceled in January 2025 as Sony scaled back its live-service ambitions after the failure of titles like Concord. The studio spent the following year pitching new concepts but was unable to secure approval for another production before the closure decision was made.

Sony’s Studio Acquisition Record: A Data-Driven Analysis

Examining 11 studio purchases since 2019 and their outcomes

The Numbers Behind Sony’s Studio Strategy

11
Studios Acquired Since 2019
3
Studios Shut Down or Closing
~70
Jobs Lost at Bluepoint
5
Years Since Sony Acquisition

Acquisition Timeline: 2019-2026

2019
Insomniac Games
Sony acquires the studio behind Marvel’s Spider-Man following the game’s commercial and critical success. The studio previously developed the Spyro, Ratchet & Clank, and Resistance franchises.
2021
Major Acquisition Wave
Sony purchases Housemarque (Returnal developer), Nixxes Software (porting specialist), Firesprite, Fabrik Games, Bluepoint Games, and Valkyrie Entertainment within a single year.
2022
Live-Service Expansion
Sony acquires Bungie (Destiny franchise creator) for $3.6 billion, Haven Studios (founded by Jade Raymond), and Neon Koi (formerly Savage Game Studios) for mobile development.
2023
Firewalk Studios
Sony purchases Firewalk Studios from ProbablyMonsters to develop Concord, a live-service hero shooter that would later fail commercially.
2024
First Closures
Neon Koi shuts down after its mobile live-service game is canceled. Firewalk Studios closes following Concord’s removal from storefronts just two weeks after launch in August 2024.
February 2026
Bluepoint Games Closure
Sony announces Bluepoint will close in March 2026 following the cancellation of its God of War live-service project. The studio had not shipped a game since its acquisition.

All 11 Acquisitions: Current Status

Insomniac Games
Active
Acquired: 2019
Developed Spider-Man: Miles Morales, Spider-Man 2, and Ratchet & Clank: Rift Apart since acquisition. Currently working on Marvel’s Wolverine. Experienced layoffs in February 2024 but remains operational.
Housemarque
Active
Acquired: 2021
Finnish studio behind Returnal. Next project Saros, a rogue-lite third-person action game, scheduled for release on April 30, 2026.
Nixxes Software
Active
Acquired: 2021
Specializes in PC ports of PlayStation titles. Worked on Horizon: Zero Dawn, Marvel’s Spider-Man, The Last of Us Part 2 Remastered, and Ratchet & Clank: Rift Apart ports. Supporting Housemarque on Saros.
Firesprite
Uncertain
Acquired: 2021
Released Horizon: Call of the Mountain for PSVR2 in 2023. Experienced layoffs in February 2024. Co-developing Theaters of War mode for Star Citizen. Current PlayStation projects unclear.
Fabrik Games
Uncertain
Acquired: 2021
Firesprite subsidiary founded by Graeme Ankers. No releases since acquisition. Reportedly worked on the canceled Twisted Metal live-service game.
Bluepoint Games
Closing March 2026
Acquired: September 2021
Renowned for remakes including Demon’s Souls (2020) and Shadow of the Colossus (2018). Assisted on God of War Ragnarök (2022). Canceled God of War live-service project led to closure announcement.
Valkyrie Entertainment
Uncertain
Acquired: 2021
Founded 2002. Support studio with over 100 game credits including God of War, Infamous, and Twisted Metal. Contributed to Concord. Current projects unknown.
Haven Studios
Uncertain
Acquired: March 2022
Founded 2021 by Jade Raymond. No releases yet. Working on live-service game Fairgames, announced 2023 but delayed. Raymond departed the studio in 2025.
Bungie
High Stakes
Acquired: July 2022
Halo and Destiny franchise creator acquired for $3.6 billion. Experienced layoffs in October 2023 (~100 employees) and July 2024 (~220 employees). Marathon launches March 5, 2026.
Neon Koi
Closed October 2024
Acquired: August 2022
Originally Savage Game Studios, founded 2020. Joined PlayStation Studios Mobile Division. Mobile live-service game canceled. Studio closed without releasing any titles.
Firewalk Studios
Closed October 2024
Acquired: April 2023
Developed Concord, which launched August 2024. Game removed from storefronts two weeks later due to poor player response. Studio shuttered with all employees laid off.
Active & Productive
Uncertain Status
Closed or Closing

Studio Status Distribution

Key Findings

⚠️
Live-Service Connection
All three shuttered studios (Bluepoint, Firewalk, Neon Koi) were working on canceled live-service projects at the time of closure.
📊
27% Closure Rate
3 of 11 studios acquired since 2019 have closed or will close, with 5 additional studios in uncertain status.
🎮
Strategic Shift
Sony announced plans for 12 live-service games by 2025 but canceled 8 projects and effectively abandoned the strategy by 2025.
💼
Financial Context
PlayStation division profits rose 19% in recent quarters despite studio closures and layoffs affecting roughly 900 positions across SIE.

The closure announcement was covered in recent technology industry developments, alongside other significant changes affecting the gaming sector. The PlayStation division continues operations with remaining first-party studios while adapting to what leadership described as “an increasingly challenging industry environment.”

According to internal communications reviewed by media outlets, PlayStation Studios head Hermen Hulst stated that “rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds are making it harder to build games sustainably.” The message was sent to staff following the closure decision.

The 11 studio acquisitions between 2019 and 2023 represented a significant expansion period for Sony Interactive Entertainment. Three studios have now closed, five operate in uncertain capacity, and three continue active development on announced projects. Related coverage of technology sector restructuring has examined similar patterns across the industry.

For the approximately 70 Bluepoint employees affected, Sony indicated it would attempt to find opportunities within its global studio network where possible. The studio’s final day of operations is scheduled for March 2026. Additional context on industry changes can be found through coverage of technology company strategic shifts and workforce impacts affecting the sector.

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