Demon's Souls developer Bluepoint Games is being shut down, five years after it was acquired by Sony
The studio never released a PS5 game after its acquisition
☹️ Sony has taken the decision to shutter Bluepoint Games
👎 The studio’s closure means 70 employees will be impacted when it occurs next month
🗡️ Bluepoint Games was best known for the remasters of Shadow of the Colossus and Demon’s Souls from 2018 and 2020
😖 Bluepoint was acquired by Sony in 2021, although it didn’t release or announce any new games
Sony has decided to shutter Bluepoint Games, the studio famed for its remakes of both Shadow of the Colossus for PS4 and Demon’s Souls for PS5 in recent years.
According to a report from Bloomberg, approximately 70 employees will be impacted by the closure when it occurs next month.
A PlayStation spokesperson told Bloomberg that “Bluepoint Games is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community… We thank them for their passion, creativity and craftmanship.”
An email from PlayStation CEO Hermen Hulst explaining the decision was also shared on Resetera:
Hello everyone,
I wanted to share an important update from the Studio Business.
As I mentioned in the December Town Hall, 2025 had some strong highlights within PlayStation Studios. Ghost of Yōtei launched to critical and commercial success, Death Stranding 2: On the Beach further showcased our commitment to narrative excellence, and Helldivers 2 and MLB The Show continue to drive on-going player engagement and revenue.
At the same time, we're operating in an increasingly challenging industry environment. Rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds are making it harder to build games sustainably.To navigate this reality, we need to continue adapting and evolving. We've taken a close look at our business to ensure we're delivering today while still well-positioned for the future. As a result, we will be closing Bluepoint Games in March.
This decision was not made lightly. Bluepoint is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community. I want to thank everyone at Bluepoint for their creativity, craftsmanship, and commitment to quality. Where possible, we will work to find opportunities for some impacted employees within our global network of studios.
While I know this is hard news to hear, I'm confident in the direction we're headed. Creativity, innovation, and building unforgettable experiences for players remain at the heart of PlayStation Studios. We have a robust roadmap for FY26, with much to look forward to in the months ahead.Thank you for your hard work and continued support.
Best,
Hermen Hulst
CEO, Studio Business Group
Bluepoint had previously been working on a live-service God of War game up until January 2025 when the project was cancelled. The studio then spent the rest of 2025 pitching new projects to Sony, and was then shuttered before it could release a new title.
Bluepoint Games was founded in 2006 by former Retro Studios employees, and had worked closely with Sony for nearly two decades on PlayStation games, including the God of War Collection, Metal Gear Solid HD Collection, and Uncharted: The Nathan Drake Collection.
It also worked as a support studio on ports of games such as Flower, PlayStation All-Stars and Titanfall, in conjunction with other developers.
The studio was best known for its remakes of Shadow of the Colossus and Demon’s Souls in 2018 and 2020, respectively, that were especially well-received by critics and fans alike.
After the success of Demon’s Souls, which is still one of the best PS5 games, Sony purchased Bluepoint Games in 2021. The studio helped with some co-development work on God of War Ragnarok under Sony’s stewardship, but didn’t produce anything new or announce any new games after that.
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Reece Bithrey is a journalist with bylines for Trusted Reviews, Digital Foundry, PC Gamer, TechRadar and more. He also has his own blog, UNTITLED, and graduated from the University of Leeds with a degree in International History and Politics in 2023.