Sony Stuns Industry with Another Studio Closure

Ori creator Thomas Mahler has responded to the closure of Bluepoint Games, a PlayStation Studios developer. Sony’s recent announcement indicated that Bluepoint Games would shut down after a business review, resulting in 70 employees losing their jobs. According to Bloomberg, Sony stated that Bluepoint Games will officially close in March 2026 following a review of their business operations. Prior to this, after being acquired by Sony in 2021, Bluepoint Games assisted with the development of God of War Ragnarok in 2022. Bluepoint was developing an unannounced God of War live-service game until Sony canceled it in January 2025 as part of their move away from live-service games. This marks the third studio Sony has closed within two years of acquiring it. Despite a Sony spokesperson stating last year that the studio would not close, the closure has now occurred. Mahler lamented the ongoing wave of layoffs in the gaming industry. He noted that he is involved in numerous discussions about job prospects, often hearing concerns about the perceived risk of joining an indie team versus the concept of job security.

Mahler’s comments come amid escalating development costs, longer production times, and shifting market conditions that have led to numerous layoffs and studio closures in the video game world over the past two years. Sony’s PlayStation Studios have also had to make significant changes to balance live-service projects with single-player games. The closure of Bluepoint Games demonstrates that even studios known for their technical skills and successful projects are vulnerable to industry-wide pressures. In light of these closures, Mahler argued that position stability is merely a lure to attract employees, and he advised people to be less naive. He recommends considering where work is valued, where individuals can become indispensable assets, and where they can contribute without risking years of labor leading to project cancellation. He also emphasized the value of working in an environment where everyone is aligned, leadership is transparent, and collaboration aims for a phenomenal product rather than solely meeting shareholder expectations.

Industry Uncertainty Grows with Sony’s PlayStation Studios Shifts and Studio Closures

Mahler believes that while indie studios may seem riskier due to potential funding shortages, in large corporations, employees are often treated as disposable. Bluepoint Games’ technical skills and contributions to the PlayStation ecosystem are well-known. Sony has not yet shared specifics about the reasons for the closure or the number of affected staff. Major publishers are now reassessing project pipelines, budgets, and future plans for their studios. These industry shifts highlight the increasing instability, even for acclaimed studios. In recent years, the industry has witnessed entire studios vanishing, projects canceled, and teams dissolved, leaving those who believed their positions were secure suddenly unemployed. These closures are driven by rising costs, longer production times, and changing market conditions. Sony’s PlayStation Studios, like other major players, are adapting their strategies to balance live-service and single-player games. This environment underscores how even highly respected teams aren’t immune.

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