Sony is closing Bluepoint Games, known for remasters like *Demon’s Souls*, in March 2026, affecting 70 employees, due to rising costs and economic pressures.

Sony has shut down Bluepoint Games, the Austin-based studio known for acclaimed remasters like Demon’s Souls and Shadow of the Colossus, effective March 2026. The closure, which affects around 70 employees, follows a company review citing rising development costs, slowing industry growth, and economic pressures. Sony praised Bluepoint’s technical excellence and contributions to PlayStation’s catalog but said the move was necessary for long-term sustainability. The studio had been working on a live-service game, later canceled, which some critics say reflected misaligned strategy. Despite Sony’s strong financial performance, the decision marks the third studio closure under its ownership in under two years, raising concerns about the future of specialized development and creative investment in the industry.