Sony Group Corp Announces Bluepoint Games Studio Closure
The gaming industry received a major surprise when Sony Group Corp. announced the closure of Bluepoint Games. The Austin based studio operated as a PlayStation Studios subsidiary which specialized in creating highend remake video games. The studio will close its operations next month which results in approximately 70 workers losing their employment.
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) February 19, 2026 at 7:45 PM
The closure occurred because PlayStation executives completed a recent business review according to a spokesperson. The company decided to stop working with the team despite thanking them for their technical ability and craftsmanship because of new business strategies. The current layoffs at high profile studios result from ongoing industry wide consolidations and layoffs that have occurred throughout the last year.
Bluepoint Games established itself as a reputable developer after its founding in 2006 because they successfully remade classic video games with exceptional accuracy. The developer created the following video games which became PlayStation's most famous gaming titles
- Demon’s Souls (2020) A PlayStation 5 launch title that set a new bar for remake quality.
- Shadow of the Colossus (2018) Widely considered one of the best remakes ever made.
- Uncharted The Nathan Drake Collection Bringing the iconic trilogy to the PS4.
- God of War Ragnarok The studio provided vital codevelopment support for this 2022 blockbuster.
Sony acquired Bluepoint in 2021, and for a time, the future looked bright. The PlayStation internal changes resulted in unexpected problems which caused the studio to lose its operational capacity. Bluepoint received a task to create a liveservice God of War game after the success of Ragnarok. The project faced cancellation in January 2025. PlayStation claimed it worked with the studio to develop new project ideas yet no project emerged to enable operations to continue.
The Austin gaming community suffered a major loss when Bluepoint shut down its operations. The industry loses a specialized team which had unique skills in engine optimization and technical asset recreation because 70 skilled developers will now search for jobs in an overcrowded market. The studio which fans considered trustworthy to create PlayStation's most cherished video games has now reached its final operational day.
