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Sony Shuts Down Game Studio Founded By Ex-Call Of Duty Developer

The company also laid off 50 employees from its mobile division.

Just when we were still digesting the shocking announcement that Epic Games laid off over 1,000 employeesmore layoff news has dropped. Sony is shutting down Dark Outlaw Games, the studio started last year by industry veteran Jason Blundell, according to ResetEra and confirmed by Jason Schreier.

This isn't the first time Sony has parted ways with Blundell. Best known for his work on the zombie mode in the Call of Duty series, he founded Dark Outlaw Games after a previous PlayStation project with his studio, Deviation Games, was canceled and the studio shut down. Dark Outlaw Games never released a single title.

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.

— Jason Schreier (@jasonschreier.bsky.social) 24 марта 2026 г. в 21:10

Dark Outlaw Games' closure comes just a month after Sony shut down Bluepoint Games, the studio behind the PS5 remake of Demon's Souls and the PS4 remake of Shadow of the Colossus. Back then, in a note to staff, Hermen Hulst, CEO of Sony Interactive Entertainment, explained:

"...We're operating in an increasingly challenging industry environment. Rising development costs, slowed industry growth, changing player behavior, and broader economic headwinds are making it harder to build games sustainably.

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."

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