PlayStation Shuts Down Another Gaming Studio, Dark Outlaw Games

Last month, PlayStation announced the closure of Bluepoint Games, the developers of Demon’s Souls and Shadow of the Colossus remakes, which definitely hurt the fans. Much water has flowed under the bridge since then, especially about Bluepoint Games desire to make the remake of Bloodborne, but for the second month in a row, PlayStation has decided to shut down yet another studio.

A new report comes from Bloomberg, with Jason Schreier reporting PlayStation has decided to shut down Dark Outlaw Games, a first-party studio led by former Call of Duty Zombies developer Jason Blundell. This is the second studio founded by Blundell and closed by PlayStation—the first one was Deviation Games, but it wasn’t owned by PlayStation—and it was said to develop games for PlayStation 5. However, now both studios are shut down without releasing their debut titles. The official statement from Jason Schreier, via his BlueSky, you can check out below:

“More layoffs today: PlayStation is closing Dark Outlaw Games, a studio formed last year by former Call of Duty lead Jason Blundell (his previous PlayStation studio, Deviation, was shut down in 2024).

PlayStation is also making other cuts including in mobile development. Around 50 people laid off.

Correction: the previous studio Deviation Games was not owned by PlayStation; it was making a game *for* PlayStation. Deviation shut down before releasing that game, then PlayStation hired Blundell to start a new studio, which was shut down today.”

Dark Outlaw Studio was founded back in March 2025, and according to rumors, the studio was developing a new AAA IP. We don’t know (yet) what happened to this project, whether it was canceled or will be transferred for development to another studio, but hopefully it will be clarified soon.

Since 2009, more than 10 studios have been shut down by PlayStation, including Firewalk Studios (Concord), London Studio, Neon Koi, Evolution Studios, and more. This year, Bluepoint Games and Dark Outlaws Games have been added to the collection, and PlayStation fans are hopeful some familiar companies like Bend Studio, who are reportedly working on a new exclusive for PlayStation 5, won’t be shut down.

Are you disappointed PlayStation decided to shut down yet another studio? Share your thoughts in the comments below!