Sony is shutting Bluepoint Games down just five years after buying it. Hermen Hulst said the decision was the result of an “increasingly challenging industry environment” in a note to staff on Thursday. It’s a shocking end for a studio that Hulst himself admits “delivered exceptional experiences for the PlayStation community” and comes despite a recent jump in profits for Sony’s gaming division.
“I wanted to share an update from the Studio Business,” the message, a copy of which was viewed by Kotaku, began. “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.”
It continued:
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.
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.
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.
None of you saw this acquisition coming! 😊
— Hermen Hulst (@hermenhulst) September 30, 2021
The message will likely give some fans a feeling of whiplash. It mentions the need for tough cost-cutting before immediately praising Bluepoint’s work. Its most recent games, a PS5 remake of Demon’s Souls and a PS4 remake of Shadow of the Colossus, were both critically acclaimed. Sony reported in 2021 that Demon’s Souls sold 1.4 million copies in the hardware’s launch year.
Instead of continuing to have Bluepoint remaster or remake popular classics, a strategy which has proven very lucrative for Capcom with Resident Evil and Bethesda with The Elder Scrolls: Oblivion, the Texas-based studio was put on a live-service spin-off of God of War which ended up being canned in early 2025. The great irony now is that Sony is finally remaking the original God of War trilogy but is about to close the most obvious candidate for the job. Bluepoint was one of the co-development partners on 2022’s God of War Ragnarök.
And despite larger industry headwinds, Sony recently posted impressive profits. While overall sales across the gaming division were down year-over-year, profits for PlayStation last quarter rose 19 percent. It even revised its forecast for the current quarter upwards. Bluepoint is the third recently acquired game studio Sony has shuttered in less than two years.