Sony is closing Bluepoint Games, the studio behind the Shadow of the Colossus and Demon’s Souls remakes, according to a report by Bloomberg. The closure will officially take place in March, resulting in the loss of approximately 70 jobs.

Sony attributed the decision to shut down the studio to a “recent business review.” In a statement to Bloomberg, the company said, “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.”

Bluepoint’s last major project was God of War: Ragnarok in 2022, which it co-developed with Sony Santa Monica. Following that release, the studio was reportedly assigned to develop a live-service game set in the God of War universe. This title was cancelled in 2025, alongside another game from Bend Studio.

Sony acquired Bluepoint Games in 2021, viewing the studio’s expertise in remaking and remastering classic PlayStation games as a strategic asset. The closure follows a pattern of challenges with Sony’s pivot into live-service publishing. The company shut down the servers for the multiplayer shooter Concord just two weeks after its release and subsequently closed Firewalk Studios, the developer behind the game.

Despite these setbacks, some Sony studios continue to experiment with live-service mechanics. Guerilla Games recently announced an online co-op game set in its Horizon universe. Additionally, Bungie’s extraction shooter Marathon is scheduled to launch in March.


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