PlayStation Shuts Down Bluepoint Games, Ending a 20 Year Remake Powerhouse After Demon’s Souls on PS5
PlayStation is shutting down Bluepoint Games, the studio behind the Demon’s Souls remake and a long track record of high end remakes and remasters across multiple iconic franchises. The report comes from Bloomberg journalist Jason Schreier, who said the decision impacts the studio’s remaining 70 developers, just 5 years after Bluepoint formally joined PlayStation Studios. In a statement shared via Bloomberg, a PlayStation spokesperson called Bluepoint an incredibly talented team and thanked them for their passion, creativity, and craftsmanship.
Schreier also shared the news via social posting, reinforcing the same core outcome: the studio is being closed and staff are losing their jobs.
BREAKING: PlayStation is shutting down Bluepoint Games, the studio responsible for modern remakes of classic games such as Demon's Souls and Shadow of the Colossus, Bloomberg News has learned. A shocking end for a well-respected studio.
— Jason Schreier (@jasonschreier.bsky.social) February 20, 2026 at 2:45 AM
For fans, the shock factor is not just the loss of a respected team, it is the timing and the strategic dead end it implies. Bluepoint delivered Demon’s Souls as a day 1 PS5 showcase title and then largely disappeared into silence regarding its next major project. The studio did contribute co development work on God of War Ragnarök, but PlayStation never publicly locked in what Bluepoint would ship next as a lead developer, leaving the community to fill the gap with hope and rumor.
The most credible look behind the curtain also came from Bloomberg, which previously reported Bluepoint had been working on a God of War live service project that was cancelled at the start of 2025. Bloomberg’s new report says that after that cancellation, Bluepoint pitched new projects to PlayStation leadership, including Herman Hulst, but none of those pitches were accepted. With no approved next project, the studio appears to have hit an internal wall that ended in closure.
The human impact makes this hit harder. Bluepoint was founded in 2006 and 2026 marked its 20th anniversary, turning what should have been a celebration year into a layoff headline. For PlayStation, it also raises uncomfortable questions about portfolio governance, especially after the company spent years elevating remakes, remasters, and prestige single player quality as part of its brand promise. Bluepoint’s expertise was a strategic asset, and closing it signals either a major recalibration of priorities or a breakdown in greenlight decision making after the live service pivot did not stick.
For the broader industry, this is another high visibility reminder that studio acquisitions do not guarantee long term security, and that cancellation events often create a domino effect. When a team is scoped for a big bet project and that bet collapses, the follow up question is whether leadership is willing to fund a pivot. In Bluepoint’s case, Bloomberg indicates that pivot did not get approved, and the studio paid the price.
Do you think PlayStation’s leadership failed Bluepoint by not approving a new project after the 2025 cancellation, or is this simply the harsh reality of rebalancing strategy after the live service push slowed down?
