Just One Year After Launch: Sony SIE Shuts Down First-Party PlayStation Studio Dark Outlaw Games

Led by Former Call of Duty Zombies Architect Jason Blundell, the Studio Never Revealed Its Debut Project; Sony’s Recent Closures Include Bluepoint as Industry Pressures Mount

According to a report from Bloomberg, Sony Interactive Entertainment (SIE) has shut down Dark Outlaw Games, a first-party PlayStation studio founded just one year ago under the leadership of veteran Call of Duty developer Jason Blundell.

Since its inception, Dark Outlaw Games had been actively hiring, with reports suggesting the studio was working on a live-service multiplayer title. However, prior to its dissolution, the studio never disclosed any details about its debut project.

From Deviation to Dark Outlaw: Blundell’s Two Collaborations with Sony

Jason Blundell brings more than 13 years of experience in the gaming industry, having played a key role in the development of multiple Call of Duty titles at Treyarch, including Call of Duty 3, Call of Duty: Black Ops, the Zombies mode in Call of Duty: Black Ops 2, and both the campaign and Zombies mode in Call of Duty: Black Ops 3. He is widely regarded as one of the core creators of the Call of Duty Zombies mode.

Before founding Dark Outlaw, Blundell co-founded Deviation Games and entered into a publishing agreement with Sony to develop a live-service title. According to a report from Kotaku, the project’s initial budget exceeded $200 million, but Sony later withdrew funding amid development challenges, leading to Deviation Games’ closure in 2024.

Just one year ago, Blundell said in an interview: “I’ve had the amazing opportunity to create a new studio within PlayStation Studios for Sony. The studio is called Dark Outlaw. We’ve been working away in the shadows for a while — when we’ve got something to talk about we’ll step out into the light. It’s such a privilege to be able to do it with Sony as a new first-party studio. Sony doesn’t start up first-party studios all the time, so to have that privilege is humbling.”

Sony’s Response: Strategic Adjustments to Support Long-Term Sustainability

A spokesperson for Sony SIE confirmed the changes in a statement, saying the moves were made “to support long-term sustainability.”

“Sony Interactive Entertainment’s Studio Business Group has made several strategic adjustments to support long-term sustainability,” the spokesperson said. “As part of this process, there were limited workforce reductions across select teams. We greatly appreciate the contributions of all those impacted.”

According to journalist Jason Schreier, the latest round of cuts affected approximately 50 people across PlayStation, including roles within the mobile development teams.

Industry Pressures Mount as Sony Shuts Bluepoint in Recent Months

The closure of Dark Outlaw marks the second first-party studio Sony has shut down in as many months. Just last month, Sony announced it was closing Bluepoint Games, a studio widely known for its acclaimed remakes.

In an internal memo regarding Bluepoint’s closure, Hermen Hulst, CEO of Sony SIE’s Studio Business Group, explained the decision. “Rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds are making it harder to build games sustainably,” he wrote. “To navigate this reality, we need to continue adapting and evolving. We’ve taken a close look at our business to ensure we’re delivering today while still well-positioned for the future.”

Context: Gaming Industry Faces Ongoing Workforce Reductions

The closure continues a broader trend of restructuring across the gaming industry. Against a backdrop of intensifying competition, rising development costs, and shifting player spending habits, several major game companies have recently undertaken business adjustments and workforce reductions.

As of now, Sony has not provided further details regarding the closure of Dark Outlaw Games or the status of its in-development project. A job listing for Dark Outlaw remains visible on PlayStation’s careers page, where the studio had described its mission as building “the next groundbreaking AAA original IP” within a “lean and highly efficient” development setup.