Sony Shuts Down Studio Behind Critically-Acclaimed Demon’s Souls And Shadow Of The Colossus Remakes
Kotaku
by Ethan GachFebruary 19, 2026
AI-Generated Deep Dive Summary
Sony has announced the closure of a studio known for its critically-acclaimed work on *Demon’s Souls* and the remakes of *Shadow of the Colossus*. The team, which was acquired by Sony just four years ago, played a pivotal role in revitalizing beloved franchises and creating standout titles that left an indelible mark on the gaming world. This decision has sent shockwaves through the gaming community, with fans expressing disappointment over the loss of creative talent and the potential impact on future projects.
The studio’s rise and fall is a significant story in the gaming industry, especially considering its short tenure under Sony’s ownership. Acquired in 2019, the team quickly established itself as a force to be reckoned with, delivering *Demon’s Souls*, a spiritual successor to the classic *Souls* series that garnered widespread acclaim for its challenging gameplay and atmospheric design. The remakes of *Shadow of the Colossus* further cemented their reputation, showcasing their ability to breathe new life into iconic franchises while staying true to their original vision.
While the reasons behind the studio’s closure remain unclear, this move highlights the challenges of maintaining creative integrity in a corporate environment. Fans and industry insiders alike are left wondering how this decision will affect the future of the franchises they hold dear. The shutdown also raises questions about Sony’s strategy for its subsidiary studios and whether this marks a shift in their approach to game development. For those passionate about gaming, this news underscores the importance of supporting independent talent and the risks posed by relying on larger corporations to preserve beloved IPs.
The broader implications of this decision
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Originally published on Kotaku on 2/19/2026