Sony is shutting down the studio behind the Demon's Souls remake
Engadget
by Ian Carlos CampbellFebruary 19, 2026
AI-Generated Deep Dive Summary
Sony is closing Bluepoint Games, the studio behind the remakes of *Shadow of the Colossus* and *Demon's Souls*, following a recent business review, according to Bloomberg. The studio, which co-developed *God of War: Ragnarok* in 2022, will officially shut down in March, resulting in job losses for approximately 70 employees. Sony acknowledged Bluepoint’s contributions, describing them as “incredibly talented” and praised their technical expertise in creating exceptional gaming experiences.
The closure comes after Bluepoint was reportedly tasked with developing a live-service game set in the *God of War* universe, which was canceled alongside another project from Bend Studio. This decision aligns with Sony’s broader struggles in the live-service space, following failures like the quick shutdown of multiplayer shooter *Concord* and the subsequent closure of Firewalk Studios. Bluepoint had been acquired by Sony in 2021 due to their expertise in remaking and remastering classic PlayStation games, but it remains unclear why this shift in strategy occurred.
While some of Sony’s other studios, like Guerilla Games and Bungie, continue to experiment with live-service mechanics, the closure of Bluepoint highlights the challenges Sony faces in balancing premium game development with the demands of online multiplayer experiences. This move underscores broader industry shifts and raises questions about Sony’s long-term approach to gaming, particularly as they navigate the complexities of modern game design and market expectations.
For readers interested in tech and gaming, this news reflects the ever-evolving landscape of console development and the pressures faced by studios adapting to new trends. The closure also sheds light on the strategic decisions driving the future of PlayStation’s creative ecosystem.
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Originally published on Engadget on 2/19/2026