Bluepoint’s shutdown is a gut punch — PlayStation’s live-service retreat just cost us a studio

Why this closure actually matters to players

This caught my attention because Bluepoint didn’t just make pretty ports – they rewrote the rulebook on what remakes can be. Sony is closing the studio in March, impacting roughly 70 developers, after redirecting them onto a God of War live‑service project that was later cancelled. That’s not just a layoff number: it’s institutional knowledge and a voice for single‑player craft being erased because corporate priorities shifted toward a risky GaaS play that ultimately fizzled.

• Key takeaway 1: Bluepoint – the house that remade Demon’s Souls and Shadow of the Colossus – is being closed despite critical and commercial success.
• Key takeaway 2: The studio was reassigned to a God of War live‑service project that was cancelled; Sony points to a “business review” and rising costs.
• Key takeaway 3: This is part of a broader pattern: PlayStation is scaling back aggressive live‑service plans after several high‑profile cancellations and closures.

Breaking down what happened

Multiple outlets — relaying Bloomberg’s reporting and Sony’s brief confirmations — say Bluepoint will close in March. The studio’s reputation was built on technical excellence: the PS5 Demon’s Souls remake and Shadow of the Colossus reboot are cited across outlets as prestige work that moved the needle for PlayStation hardware. Sony acquired Bluepoint in 2021 and then, tellingly, repurposed the studio for a live‑service God of War project. That project was cancelled in January 2025, and after a recent internal business review PlayStation chose to shutter the studio rather than reassign it back to its core strengths.

Why Sony says it’s necessary — and why that rings hollow

Hermen Hulst’s internal note, quoted by outlets, frames the decision as pragmatic: “we’re operating in an increasingly challenging industry environment. Rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds” make some projects unsustainable. That’s not wrong as a statement of fact — costs are up industry‑wide — but it’s a weak justification for shutting a studio whose output had both critical acclaim and sales. The optics are worse when the shutdown follows a corporate pivot that placed Bluepoint on a project far from its wheelhouse.

The bigger pattern at PlayStation

Bluepoint’s closure sits alongside a string of first‑party realignments. Over the last few years PlayStation has cancelled or scaled back multiple live‑service experiments, and closed studios tied to those efforts. Several sources point to Firewalk’s shutdown after Concord’s failed launch, Naughty Dog stepping away from a persistent Last of Us multiplayer, and other cancelled GaaS attempts. The company’s earlier ambition to ship a slate of live‑service titles has clearly been curtailed by commercial reality.

That shift matters because it forces a reckoning about how Sony organizes talent. Redirecting a boutique remastering team into a long‑running live platform shows a mismatch between studio expertise and corporate strategy. Now the company is paying for that decision with jobs and, arguably, goodwill among fans who saw Bluepoint as a guardian of PlayStation heritage.

Industry reaction and what gamers lose

Developers and industry figures poured out grief online — a consensus that the amount of institutional knowledge being lost is “staggering,” as GamesRadar summarized. Voices across the press (from 3DJuegos and JeuxVideo to Steam News summaries) called the move painful and, in some corners, unjust. For players, the immediate loss is less tangible than a cancelled game: it’s the removal of a trusted specialist studio that could have continued to revive older PlayStation classics with care and craft.

What this means going forward

Practically, expect PlayStation to double down on fewer, safer bets — big single‑player tentpoles and ongoing live services with proven traction — while being more ruthless about studios that don’t fit the new plan. For fans hoping Bluepoint would tackle other beloved but dormant franchises, this is a setback. For developers, it’s a reminder that corporate strategy changes faster than studios can reskill.

TL;DR

Sony is closing Bluepoint in March after cancelling its God of War live‑service project. The shutdown is symptomatic of PlayStation stepping back from an ambitious live‑service push and paying a steep price: veteran talent, niche technical skill, and goodwill among players. It’s a practical business choice wrapped in the cost of a strategic misstep — and gamers will feel the consequences in lost remakes and fewer guardians of PlayStation’s legacy.