Dark Outlaw Games closed just one year after its launch

Sony Interactive Entertainment has closed first-party studio Dark Outlaw Games. The studio was founded in March of last year by Jason Blundell, a former Treyarch player famous for the zombie mode in the Call of Duty series, and was developing a private project.

According to multiple foreign media, Sony said, "We have made several strategic adjustments for long-term sustainability," and "there have been limited staff reductions in some teams in the process." Sony added, "We are deeply grateful for the contribution of all those affected."

Consecutive studio closures signal a reorganization of PlayStation strategy

This closure is not an isolated incident. According to related industry reports, Sony is in the process of additional layoffs of about 50 people, including in the mobile development division, and workforce adjustments are being made in the US and UK.

Last month, Sony also shut down Bluepoint Games, a studio specializing in remasters. Bluepoint is a studio known for co-developing God of War Ragnarok and remastering Demon's Souls, Shadow of the Colossus, and Uncharted. At the time, approximately 70 people were affected.

Blundell’s turbulent studio history

Jason Blundell had a similar experience before founding Dark Outlaw Games. He founded Deviation Games with colleague Dave Anthony in 2020 and signed a contract with PlayStation to develop original AAA IP. However, Blundell left the studio in 2022, and Deviation Games laid off 99 people in 2023 and closed completely in March 2024.

Uncertainty in PlayStation’s first-party strategy

Sony's successive studio closures are in line with the overall restructuring trend in the gaming industry. While large publishers are reorganizing their businesses to focus on efficiency amid a high interest rate environment and rising development costs, Sony also appears to be reorganizing its workforce and studios in the name of 'long-term sustainability'. The case of Dark Outlaw Games, which was shut down just one year after its launch, shows Sony's conservative stance on new studio investments.