Jason Blundell, former creative lead on Activision Blizzard's Call of Duty: Black Ops series, has announced Magic Fractal Studios as his third venture after leaving the publisher in 2020. The announcement came during a livestream with former Dark Outlaw Games colleague JC Farmer, just over a week after Sony shut down their previous studio. Little is known about Magic Fractal beyond its logo and social media presence.

Dark Outlaw Games, formed in March 2025 with Sony's backing, closed before announcing any projects. Blundell later revealed the studio wasn't developing a live-service game, a distinction that stands out given recent industry trends. Sony has closed two other studios tied to live-service projects: Firewalk Studios in October 2024 following its shooter Concord's release, and Bluepoint Games in February 2026 after reportedly canceling its God of War-based live-service game.

Before Dark Outlaw, Blundell led Deviation Games, which shut down in 2024 while reportedly working on a PlayStation project. This pattern of studio closures has become increasingly common in the gaming industry, particularly for live-service titles that struggle to find audiences. Blundell's new venture enters an uncertain market where even established developers face significant challenges.