Sony to Shut Down Demon's Souls Remake Developer Bluepoint Games in March

Sony is shutting down Bluepoint Games, the developer behind beloved remakes and remasters of PlayStation games. The company confirmed to Bloomberg that the studio would close operations “following a recent business review”. Bluepoint's last project was an acclaimed remake of Demon's Souls, that released in 2020 as a launch title for the PS5.

In a statement to Bloomberg, a PlayStation spokesperson confirmed that roughly 70 Bluepoint employees would be laid off as a result of the studio's closure. Bluepoint will be officially shut down next month.

“Bluepoint Games is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community,” the spokesperson said. “We thank them for their passion, creativity and craftmanship."

Sony Cites 'Challenging Industry Environment'

In an email to staff that was reposted on Resetera, PlayStation Studios head Hermen Hulst cited “increasingly challenging industry environment, rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds” as the reasons behind Sony's decision.

“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.”

Bluepoint's Demon's Souls remake is considered one of the best games released on PS5
Photo Credit: Sony/ Bluepoint Games, Japan Studio

Bluepoint Games' PlayStation History

Austin, Texas-based Bluepoint Games was formed in 2006 and has had a reputation of delivering high quality remaster collections and remakes of PlayStation games on PS3, PS4, and PS5. The studio worked on the remastered Uncharted: The Nathan Drake Collection, the acclaimed Shadow of the Colossus remake, and co-developed PS5 launch title Demon's Souls remake with Japan Studio.

Sony acquired the Bluepoint in 2021 and said that the studio's “expertise in high-quality world building and character creation will aid in the development of future PlayStation Studios properties.”

At the time of the acquisition, Bluepoint Games president Marco Thrush said there was “a long history of trust” between studio and Sony Interactive Entertainment.

“We share the same values and we're equally committed to creating great new games. Joining PlayStation Studios will empower our team of highly talented and passionate creators to take the quality bar even higher and undertake more ambitious projects while retaining our company culture and identity,” Thrush had said.

Following the release of Demon's Souls in 2020 and the Sony acquisition a year later, Bluepoint did not ship a game on PS5. The studio provided development support to Santa Monica Studio on God of War Ragnarok.

Bluepoint was working on a live service God of War project, which was cancelled in January 2025 amidst Sony's broader retreat from its faltering live service strategy. At the time of the project's cancellation, Sony said it was working closely with Bluepoint to determine its next project.