Sony is closing Bluepoint Games, the studio behind the acclaimed Demon's Souls and Shadow of the Colossus remakes, according to Bloomberg. The Austin-based developer, which Sony acquired in 2021, will officially shut down in March, resulting in approximately 70 employees losing their jobs. Bluepoint's last major project was co-developing God of War: Ragnarok in 2022.

Following Ragnarok, Bluepoint was reportedly developing a live-service game set in the God of War universe, but that project was cancelled in 2025 alongside another title from Bend Studio. This decision comes amid Sony's broader struggles with live-service games, including the disastrous Concord multiplayer shooter, which was shut down just two weeks after launch. Firewalk Studios, developer of Concord, was also closed.

When Sony acquired Bluepoint, the studio's expertise in remaking and remastering classic PlayStation games seemed like a major asset. However, Sony's pivot into and out of premium online multiplayer games appears to have played a role in the closure. While some Sony studios continue experimenting with live-service mechanics, including Guerilla Games' upcoming Horizon co-op game and Bungie's Marathon extraction shooter, Bluepoint's future in this direction has been cut short.