Bluepoint Games is closing in March — Sony blames rising costs and a cancelled live‑service shift

Bluepoint Games is closing in March — Sony blames rising costs and a cancelled live‑service shift

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Demon's Souls (PS5 remake)

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Entirely rebuilt from the ground up and masterfully enhanced, Demon's Souls is a remake of the 2009 release that introduces the horrors of a fog-laden, dark fa…

Platform: PlayStation 5Genre: Role-playing (RPG), Hack and slash/Beat 'em up, AdventureRelease: 11/12/2020Publisher: Sony Interactive Entertainment
Mode: Single player, MultiplayerView: Third personTheme: Action, Fantasy

Why Bluepoint’s closure actually matters to players

This one caught my attention because Bluepoint wasn’t a nameless workhorse – it was the studio people pointed to when they wanted a flawless, tactile remake. From Demon’s Souls on PS5 to Shadow of the Colossus and the Uncharted remasters, Bluepoint built a reputation for technical craftsmanship. Sony’s decision to close the studio in March after an internal business review means PlayStation is effectively pruning a team that specialised in polishing and preserving games, at a moment the industry is already tightening belts.

  • Key takeaway: Sony will close Bluepoint Games in March 2026, affecting roughly 70 staff, after a business review.
  • Drivers cited: rising development costs, slowed industry growth and changing player behaviour, plus the cancellation of Bluepoint’s live‑service God of War project (January 2025).
  • Why it stings: Bluepoint’s remakes were both critical and commercial hits, but the studio had been repurposed for Sony’s live‑service push – a strategy that has seen several costly reversals.

Breaking down the announcement

Multiple outlets confirmed the same core facts: Sony will close Bluepoint Games in March following a “recent business review,” and PlayStation leadership praised the studio’s “passion, creativity and craftsmanship” even as it announced the shutdown (Eurogamer, 3DJuegos, JeuxVideo). The move affects about 70 employees and comes five years after Sony acquired Bluepoint in 2021.

Hermen Hulst’s internal memo – reported publicly through coverage of the note — frames the decision as a response to an “increasingly challenging industry environment,” singling out higher development costs, slower growth and shifting player habits. That’s the line PlayStation is giving; the public thread tying the closure to a cancelled live‑service God of War project dates back to January 2025, when that effort was reportedly scrapped.

Screenshot from Demon's Souls
Screenshot from Demon’s Souls

Where the story splits from the PR

On paper the PR and reality both match: a business review plus industry headwinds. But the sharper angle is strategic misfit. Bluepoint built its brand on short‑to‑mid‑scope projects — remakes that require technical excellence and careful design, not long‑running, monetised live services. Several outlets (3DJuegos in particular) argue Bluepoint’s fate was sealed when Sony repurposed the studio for the company’s push into games‑as‑a‑service (GaaS). When Sony’s GaaS ambitions hit turbulence — including reported project cancellations elsewhere — studios drafted into that push found themselves without a long‑term plan.

JeuxVideo points out the bitter irony: critically lauded releases from Bluepoint moved real units (their remakes scored high on Metacritic and sold well), yet commercial and strategic forces still left the studio vulnerable. That tension — between cultural value and corporate calculus — is the subtext here.

Screenshot from Demon's Souls
Screenshot from Demon’s Souls

What this means for remakes, fans and PlayStation’s roadmap

Practically, players lose a go‑to team for high‑end remakes. Bluepoint’s technical work has been a standard for others to chase; losing the studio shrinks the pool of specialists who can turn older games into modern showcase pieces. For PlayStation, the closure signals a willingness to cut even well‑regarded teams if they don’t fit a tighter financial plan tied to live engagement and recurring revenue.

It also raises questions about Sony’s live‑service calculus. Reports indicate Bluepoint pivoted to a God of War live‑service project that never shipped; if internal targets for GaaS were aggressive and several projects stumbled or were cancelled, the ripple effects are predictable. This is part of a recent pattern of studio closures at PlayStation as the company leans into fewer tent‑pole, revenue‑driving experiences.

Screenshot from Demon's Souls
Screenshot from Demon’s Souls

What to watch next

Look for Bluepoint staff reactions on social platforms and LinkedIn as people process the closure. Sony’s Q1 2026 commentary will be telling: will leadership double‑down on live services or pivot back toward curated single‑player experiences? And developers who specialised in remasters will be ones to watch — some may form new teams or join other studios that want that exact expertise.

TL;DR

Sony is shutting Bluepoint Games in March after a business review that cited rising costs and slower growth. The studio’s pivot to a cancelled live‑service God of War project appears to have left it exposed. For players, this isn’t just a corporate reshuffle — it’s the loss of one of remakes’ finest craftsmen at a time when preserving and modernising older games still matters.

e
ethan Smith
Published 2/22/2026
4 min read
Gaming
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