All Studios Closed by PlayStation Since the Launch of PS5

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More than five years after the PlayStation 5’s launch, Sony has delivered impressive games and hardware. However, this generation has also been marked by significant restructuring, game cancellations, and the closure of several PlayStation Studios-affiliated developers. With recent closures of Dark Outlaw Games and Bluepoint Games in early 2026, here’s a recap of studios Sony has closed since the PS5 launch. List of Closed Studios (2020–2026): 2020: Manchester Studio 2021: Japan Studio 2023: PixelOpus 2024: London Studio 2024: Firewalk Studios 2024: Neon Koi 2026: Bluepoint Games 2026: Dark Outlaw Games Since 2020, Sony has closed eight of its PlayStation game development studios. Industry analysts speculate that studios such as Nixxes, Valkyrie, Asobi, Media Molecule, LFG, Firesprite, and Housemarque could be at risk, and that even Saros—despite its higher cost—could face closure, even after Returnal’s underperformance. Several of these studios closed shortly after being acquired or established, reflecting a shift in Sony’s development strategy. The Beginning of the Purge: From Manchester to Japan Studio

The closures began at the PS5’s launch in 2020 with Manchester Studio. Founded in 2015, the British studio focused on creating content for PlayStation VR. The following year, Sony surprised the industry by dismantling Japan Studio, known for cult classics like Ape Escape, Gravity Rush, and original versions of Shadow of the Colossus and The Last Guardian. Sony restructured the producer exclusively around Team ASOBI, the creators of Astro Bot. In 2023, PixelOpus was closed. Despite being responsible for the well-received Concrete Genie, one of Sony’s smaller studios could not find its place within the company’s business strategy focused on AAA games and live-service models. 2024: The Cursed Year for PlayStation The year 2024 will be remembered as one of the most turbulent for Sony’s video game division. In addition to mass layoffs affecting teams at Naughty Dog, Insomniac Games, and Guerrilla Games, the company closed three studios: London Studio: A historic studio known for casual successes and innovations in virtual reality and peripherals such as SingStar, EyeToy, and, more recently, Blood & Truth. Firewalk Studios: The team behind Concord, the multiplayer hero shooter that was quickly withdrawn from the market after a failed launch.

Challenges and Closures in Mobile and Live-Service Projects (2024-2026)

Neon Koi: Previously known as Savage Game Studios, this team was acquired in 2022 to expand Sony’s presence in the mobile gaming market but was closed without releasing a single title. 2026: Losses and Failed Bets In early 2026, the situation worsened. In February, Sony confirmed the closure of Bluepoint Games. The Texan studio, renowned for the technical quality of its remakes of Demon’s Souls and Shadow of the Colossus, had been developing a live-service game within the God of War universe that was eventually canceled. Without new projects, the studio closed. Dark Outlaw Games was shut down in March 2026. Led by Jason Blundell, a Treyarch veteran known for Call of Duty’s Zombies mode, the new incubation team never presented its first project. Blundell had previously faced an identical situation when his former studio, Deviation Games, had an AAA project canceled by Sony before closing in 2024. These closures may signal a shift away from Sony launching big first-party single-player games on PC.

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