Sony Interactive Entertainment has confirmed that it will shut down Demon’s Souls and Shadow of the Colossus remakes developer Bluepoint Games in March. The company was acquired by Sony Interactive Entertainment in September 2021 and served as a co-developer on God of War Ragnarok. There was also an unannounced live service game from Bluepoint Games was canceled in January 2025, which was reportedly part of the God of War franchise
Here is the full email to employees from Sony Interactive Entertainment Studio Business Group CEO Hermen Hulst on the studio’s closure, via 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 Yotei launched to critical and commercial success, Death Stranding 2: On the Beach further showcased our commitment to narrative excellence, and Helldivers II 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 fiscal year 26, 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