The closure of Bluepoint Games stems from a “challenging industry environment”, PlayStation Studios CEO Hermen Hulst reportedly made the announcement in an internal memo, the contents of which have partially surfaced online. The leaked memo is attracting renewed attention from fans who are trying to conflate positive talk about PlayStation's recent hits with suggestions that the company's current operations simply aren't sustainable.
Bloomberg reporter Jason Schreier reported on Thursday, February 19 that PlayStation is shutting down Bluepoint Games. While Sony Interactive Entertainment has yet to officially announce the move, several Bluepoint employees have already publicly confirmed they will soon be out of a job, according to LinkedIn posts reviewed by GameRant.
God of War creator calls on Xbox to save Bluepoint games after Sony shuts down
After it was announced that Sony was shutting down Bluepoint Games, the God of War creator is calling on Xbox to step in and save the studio.
Bluepoint Shutdown Was Reportedly Announced Along With PlayStation 2025 Hits Praise
PlayStation Studios CEO Hermen Hulst confirmed the shutdown in an email to the entire group, according to a recent Kotaku report citing portions of the memo. Hulst opened by praising the company's “priorities for 2025”, including the critically and commercially successful launch Ghost of Yoteicontinued player involvement and spending in The MLB show and Helldivers 2and highly rated edition Death Stranding 2: On the Beach. “At the same time, we are working in an increasingly challenging industrial environment,” the memo said before announcing Bluepoint's closure.
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Hulst reportedly cited “rising development costs, slowing industry growth, changing player behavior and broader economic headwinds” as key factors behind Sony's concerns about the state of the gaming industry. “These pressures make it difficult to build games in a sustainable way,” he said. He also praised Bluepoint as an “incredibly talented team” that has brought “exceptional experience” over the years.
Sony bought Bluepoint in 2021, a year after the widely acclaimed release of the PS5 exclusive Soul of Demons remake. Subsequent reports stated that the studio was developing a live service game that was canceled in January 2025. According to insider accounts, Bluepoint then spent the next 12 months evaluating potential projects to bring to headquarters before it was finally marked for closure, meaning it closed without shipping a single game as an SIE subsidiary. Social media reactions to the leaked memo appear to be largely critical of the strategy leading to Bluepoint's closure. “This is a waste of a talented studio,” reads one highly positive comment on Reddit, while a similarly visible comment frames the shutdown as a long-term result of “Sony's ridiculous push for live services.”
Rising development costs, slowing industry growth, changing player behavior and broader economic headwinds make it difficult to make games sustainably.
Sony may retain some Bluepoint employees, but many are already looking for work
Ultimately, Bluepoint's closure seems to be another sign of the volatility of the gaming industry, even for well-regarded teams. Other practical questions are what will happen to the studio's employees, which numbered over 70 people by the end of 2025, according to the company's official website. In a report leaked to Kotaku, Hulst wrote that PlayStation will try to find new roles for some of the affected employees elsewhere in the group. However, he did not say how many positions can be saved this way. Subsequent social media posts indicate that a significant portion of the studio's staff will be laid off or have chosen not to pursue other roles at the company.
On LinkedIn, more than a dozen current Bluepoint employees said they were looking for new opportunities between February 19 and 20. These individuals include artistic director Mark Skelton; lead concept artist Ryan Gitter; lead character artists Justin Dewey and Ryan Todd; senior environmental artists Urban McLafferty and Zachary Schlanger; senior VFX artist Dallas Glowka; environmental artists Audrey Born and Connor Brandenburger; associate producer Kinloch Gill IV; producer Hector Aranda; graphics engineer Phoenix Bishea; main material artist Justin Wagner; rigger and animator Michael Pezok; and QA Manager Jared LaCombe. These names make up more than 20% of Bluepoint's latest reported headcount.
As of 2024, Sony has closed the mobile studio Neon Koi and Concord developer Firewalk, in addition to layoffs at many other game-making subsidiaries. The Bluepoint closure will be formally completed in March 2026.
Sources: smithdog223 / Reddit, 9Ifrit9 / Reddit, Mark Skelton / LinkedIn, Audrey Born / LinkedIn
