In light of Sony confirming that it is shutting down Bluepoint Games in March, CEO of SIE’s Studio Business Group Hermen Hulst seemingly sent a message to staff members discussing the decision. According to Kotaku, Hulst said that the closure of the studio came down to the fact that the company is facing an “increasingly challenging industry environment.”
While the message starts off by praising the work of PlayStation Studios for critically and commercially successful games like Death Stranding 2: On the Beach, Ghost of Yōtei, Helldivers 2 and MLB The Show, it then discusses rising development costs, slowed industry growth, and player behaviour changing along with “broader economic headwinds.”
“I wanted to share an update from the Studio Business,” wrote Hulst. “As I mentioned in the December Town Hall, 2025 had some strong highlights within PlayStation Studios. Ghost of Yotei launched to critical and commercial success, Death Stranding 2: On the Beach further showcased our commitment to narrative excellence, and Helldivers 2 and MLB The Show continue to drive on-going player engagement and revenue.”
“At the same time, we’re operating in an increasingly challenging industry environment. Rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds are making it harder to build games sustainably.”
These economic issues ultimately led to Sony deciding to pull the plug on Bluepoint Games. A PlayStation spokesperson had previously confirmed that 70 employees of the studio were being laid off as a result of it being shut down.
“To navigate this reality, we need to continue adapting and evolving. We’ve taken a close look at our business to ensure we’re delivering today while still well-positioned for the future. As a result, we will be closing Bluepoint Games in March,” Hulst continued.
“This decision was not made lightly. Bluepoint is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community. I want to thank everyone at Bluepoint for their creativity, craftmanship, and commitment to quality. Where possible, we will work to find opportunities for some impacted employees within our global network of studios.”
“While I know this is hard news to hear, I’m confident in the direction we’re headed. Creativity, innovation, and building unforgettable experiences for players remain at the heart of PlayStation Studios. We have a robust roadmap for FY26, with much to look forward to in the months ahead. Thank you for your hard work and continued support.”
Bluepoint Games is well-regarded for its work on various remakes over the years, including one of the launch titles for PS5—a remake of Demon’s Souls. Previously, the studio had also worked on a remake of the critically-acclaimed Shadow of the Colossus. In more recent times, the studio was working on a live-service game that would take place in the God of War universe. However, along with many of Sony’s other live-service projects, it was also ultimately cancelled.
PlayStation had noted that the project’s cancellation wouldn’t lead to the studio being shut down at the time. Since then, Bluepoint Games has spent the year pitching new projects that seemingly didn’t get approved.
