Sony is Shutting Down Dark Outlaw Games, Moving Away From Mobile Development – Rumor

Jason Blundell, former co-founder of Deviation Games, has reportedly seen another studio shuttered, per Bloomberg's Jason Schreier.

Posted By | On 25th, Mar. 2026

PlayStation Studios

If it wasn’t bad enough that Epic Games laid off more than 1,000 employees today, Sony is allegedly shutting down Dark Outlaw Games, headed by Jason Blundell of Call of Duty Zombies fame. And yes, this is the same studio that the publisher founded one year ago after the closure of Deviation Games, the last studio that Blundell had co-founded, in 2024.

Unfortunately, that’s not all. Bloomberg’s Jason Schreier notes that cuts are incoming for mobile development, with “around” 50 employees laid off. A Resetera member posted about all this and claimed that previously announced titles, including MLB The Show Mobile, Ratchet and Clank: Ranger Rumble, and more, would still be supported. However, the company is seemingly focused on a “few select high-impact projects.”

While they didn’t cite a source, Schreier chimed in on that thread to simply reply, “Yep.”

Of course, all of this coincides with PlayStation allegedly ending its release of first-party single-player games on PC, including Ghost of Yōtei. It’s expected to be formally announced during an investor call, although Housemarque may also confirm this if asked whether Saros is coming to PC. Either way, Sony is seemingly taking a conservative approach, even if it’s not giving up the live service approach entirely, as seen with Horizon Hunters Gathering and the continued existence of Fairgame$.

More layoffs today: PlayStation is closing Dark Outlaw Games, a studio formed last year by former Call of Duty lead Jason Blundell (his previous PlayStation studio, Deviation, was shut down in 2024). PlayStation is also making other cuts including in mobile development. Around 50 people laid off.

Jason Schreier (@jasonschreier.bsky.social) 2026-03-24T18:10:02.888Z

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