Sony is shutting down the studio behind the Demon’s Souls remake

Sony is closing Bluepoint Games, the studio behind the Shadow of the Colossus and Demon’s Souls remakes, Bloomberg reports. Bluepoint’s last major project was God of War: Ragnarok from 2022, which it co-developed with Sony Santa Monica.

According to Bloomberg, Sony decided to shut down the studio following “a recent business review.” Around 70 employees will lose their jobs as part of the studio closure, which will officially happen in March. “Bluepoint Games is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community,” Sony said in a statement to Bloomberg. “We thank them for their passion, creativity and craftmanship.”

Following their work on Ragnarok, Bluepoint was reportedly tasked with developing a live-service game set in the God of War universe. That title was cancelled in 2025, alongside another game from Bend Studio. In the context of Sony’s other live-service failures, the decision wasn’t surprising. Sony shut down the servers for multiplayer shooter Concord just two weeks after its release. Not long after, it also closed Firewalk Studios, the developer behind the game.

Bluepoint Games was originally acquired by Sony in 2021, when it seemed like the studio’s expertise in remaking and remastering classic PlayStation games could be a major asset going forward. Why that changed isn’t entirely clear, but Sony’s mismanagement of its pivot into and out of publishing premium online multiplayer games may have played a role. Some of Sony’s studios are still experimenting with live-service mechanics. Guerilla Games recently announced an online co-op game set in its Horizon universe. Destiny 2 developer Bungie is also releasing its extraction shooter Marathon in March.