PlayStation is Officially Closing Another Game Studio

Image via Sony

PlayStation has reportedly closed Dark Outlaw Games, a first-party studio founded last year by former Call of Duty Zombies creator Jason Blundell. The closure is part of a larger round of cuts that affects several teams, including PlayStation's mobile development division.

According to reports, the studio was still in the early stages of developing an unannounced project, which has now been cancelled. While no official details about the game were ever revealed, Blundell's involvement with the Call of Duty franchise suggested that it could have been a multiplayer-focused title.

Sony has parted ways with Blundell for the second time. His former studio Deviation Games, was also working on a PlayStation project before closing in 2024. Blundell had worked at Activision and Treyarch for over a decade, where he helped shape the popular Zombies mode, which appeared in several entries, including Call of Duty: Black Ops III and Call of Duty: Black Ops IV.

According to reports, the most recent layoffs have affected approximately 50 employees. These cuts extend beyond Dark Outlaw Games and affect teams involved in PlayStation's expanding mobile efforts.

The closure follows another recent one in which Sony is reportedly shutting down Bluepoint Games. In an internal message, PlayStation Studios president Hermen Hulst cited rising development costs, slower industry growth, and changing player habits as key reasons for these decisions.

Despite the setbacks, Sony is still working on several live-service and multiplayer projects. These include continued support for Helldivers 2, updates for Destiny 2, and upcoming titles such as Marathon. Other projects, such as Fairgame$, are still in development.

While PlayStation has not abandoned its live-service ambitions, recent studio closures highlight the company's difficulties in expanding beyond its traditional single-player success.