Sony Shuts Down Bluepoint Games Amid Retreat From Live Service Expansion

2026-02-20 companies

Austin, Thursday, 19 February 2026.
Sony confirms the closure of remaster specialist Bluepoint Games, impacting 70 employees. The move follows the cancellation of a live-service God of War title, underscoring the industry’s broader correction regarding service-based revenue models.

End of the Line for a Remake Specialist

Sony Group Corporation (SONY) has officially confirmed the closure of Bluepoint Games, the Austin-based studio renowned for its high-fidelity technical remakes. The shutdown is scheduled to take effect in March 2026, resulting in the termination of approximately 70 employees [1][3]. A PlayStation spokesperson stated that the decision followed a “recent business review,” bringing an end to the studio’s operations just 5 years after its high-profile acquisition by Sony in 2021 [2][3]. While the studio was celebrated for its technical craftsmanship, its inability to secure a new project following internal cancellations ultimately sealed its fate [5].

The Cost of a Strategic Pivot

The closure appears to be a direct consequence of Sony’s struggle to pivot its development pipeline toward “live service” games—titles designed to generate recurring revenue over time rather than a single upfront purchase. Bluepoint had been developing a live-service project set in the God of War universe, but that title was cancelled in January 2025 [1][5]. Following that cancellation, the studio spent the last year pitching new concepts, but failed to get a project moving before Sony decided to shutter the subsidiary entirely [5]. This move is part of a wider retreat from the aggressive live-service expansion strategy championed by former CEO Jim Ryan, which aimed to launch more than 10 such titles by 2026 [2].

Economic Headwinds and Industry Correction

In an internal email regarding the closure, PlayStation Studios head Hermen Hulst cited an “increasingly challenging industry environment” as a primary driver for the decision [2]. Hulst pointed to specific economic factors, including rising development costs, slowed industry growth, and shifting player behaviors, which have made sustainable game development more difficult [2]. This narrative aligns with a broader correction across the gaming sector, where publishers are shedding risky ventures to protect margins. Despite the closure, Sony has stated it will attempt to find opportunities for some of the impacted staff within its global network of studios where possible [2].

A Legacy of Technical Excellence

Founded in 2006 by former Retro Studios employees, Bluepoint Games spent 20 years building a reputation as the industry’s premier restoration house [5]. Before its acquisition, the studio delivered critically acclaimed remakes of Shadow of the Colossus (2018) and Demon’s Souls (2020), the latter serving as a graphical showcase for the PlayStation 5 launch [1][5]. Under Sony’s ownership, the team also served as a support studio, providing co-development work on the 2022 blockbuster God of War Ragnarok [2]. The studio’s closure marks a significant loss of specialized technical talent dedicated to preserving and updating classic gaming history.

Sources

Gaming Industry Sony Group