PlayStation has officially shut down Dark Outlaw Games, a first-person studio founded in 2025, marking yet another major loss within Sony’s first-party ecosystem. The closure comes shortly after the confirmed shutdown of Bluepoint Games, signaling a troubling trend of restructuring and downsizing within the company.
A Short-Lived Studio Comes to an End
Dark Outlaw Games was established in March 2025 and led by industry veteran Jason Blundell, best known for his work on the Call of Duty franchise, particularly the Black Ops series and its popular Zombies mode. Despite the studio’s high-profile leadership, no official project from Dark Outlaw Games was ever revealed to the public.
Reports indicate that the studio has now been closed entirely, with no confirmation on whether its in-development project will ever be shown or repurposed. This marks the second time Blundell has been involved in a studio closure in recent years, following the shutdown of Deviation Games in 2024.
Bluepoint Closure Set the Stage
The shutdown follows closely behind PlayStation’s decision to close Bluepoint Games, a studio widely recognized for high-quality remakes such as Shadow of the Colossus and Demon’s Souls.
Bluepoint had recently supported development on God of War Ragnarök and was reportedly working on a live-service God of War project that was ultimately canceled. Without a new project secured, the studio was slated for closure in March 2026.
Together, these decisions suggest a broader internal shift at PlayStation, particularly around project viability and long-term investment strategies.
Layoffs Extend Beyond Studios
The closure of Dark Outlaw Games is not an isolated case. Reports indicate that PlayStation has also made cuts within its mobile game development divisions, with around 50 employees reportedly laid off.
These changes reflect a wider trend across the gaming industry, where companies are reevaluating budgets, scaling back experimental projects, and focusing on more predictable revenue streams.
Industry-Wide Layoffs Continue
PlayStation’s recent decisions align with a broader wave of layoffs affecting major companies across the gaming sector. Rising development costs, shifting player engagement, and increased financial pressure have led to widespread restructuring.
Recent reports highlight that even large publishers are not immune, with over 1,000 layoffs reported at a major developer following declining engagement in one of its flagship titles.
The situation points to a growing imbalance between development costs and revenue generation, forcing studios and publishers to make difficult decisions regarding staffing and long-term projects.
A Concerning Trend for Developers
The closure of Dark Outlaw Games underscores a larger issue within the industry: even experienced leadership and strong creative potential are no guarantee of stability.
With multiple studios shutting down and layoffs continuing across major publishers, the gaming industry appears to be entering a period of consolidation and caution. While new projects and technologies continue to emerge, the human cost behind these changes is becoming increasingly visible.
For players, these shifts may lead to fewer experimental titles and a stronger focus on established franchises. For developers, however, the current climate raises ongoing concerns about job security and the sustainability of large-scale game development.
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