Sony has confirmed it will shut down US-based studio Bluepoint Games, with around 70 staff set to lose their jobs.

The Austin, Texas-headquartered developer, behind acclaimed remakes including Demon’s Souls and Shadow of the Colossus, will close next month following what Sony described as a “recent business review”.

The studio was acquired by Sony Interactive Entertainment (SIE) in 2021 after years of close collaboration on high-profile remasters and remakes of PlayStation franchises.

PlayStation Studios head Hermen Hulst told staff the decision was “not made lightly”, citing an “increasingly challenging industry environment”.

“Rising development costs, slowed industry growth, changing player behaviour, and broader economic headwinds are making it harder to build games sustainably,” Hulst wrote in an internal message later shared publicly.

He added that Sony would seek opportunities within its global studio network for affected employees where possible.

Bluepoint built its reputation on high-end remakes of classic titles, including Uncharted: The Nathan Drake Collection, Metal Gear Solid HD Collection, and the 2020 PlayStation 5 launch remake of Demon’s Souls. The studio also co-developed 2022’s God of War Ragnarök.

However, a live-service God of War project being developed at Bluepoint was cancelled in January 2025, part of Sony’s broader retreat from a push into live-service games initiated under former CEO Jim Ryan.

The closure marks the fourth PlayStation studio shutdown in recent years, following Firesprite, Neon Koi and Firewalk.

Despite the restructuring, Sony recently raised its gaming sales and operating income forecasts for the current financial year, with group profit up 22% year-on-year.

In a statement, a PlayStation spokesperson said: “Bluepoint Games is an incredibly talented team and their technical expertise has delivered exceptional experiences for the PlayStation community. We thank them for their passion, creativity and craftsmanship.”