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Sony Shuts Down Dark Outlaw Games Amid Strategic Adjustments

3/26/2026, 1:38:42 PM

Closure of Dark Outlaw Games

Sony Interactive Entertainment has officially shut down its first-party studio, Dark Outlaw Games, which was founded by Jason Blundell, a veteran of Activision and Treyarch, in March 2023. The studio was reportedly working on an undisclosed first-party title for PlayStation. Sony confirmed the closure, stating it was part of "several strategic adjustments to support long-term sustainability." The spokesperson acknowledged that there were "limited workforce reductions across select teams," although the exact number of layoffs was not disclosed. Reports indicate that approximately 50 jobs were affected across various teams, including mobile development.

Background on Dark Outlaw Games

Dark Outlaw Games was established following Blundell's departure from Deviation Games, which he co-founded in 2021 with fellow Treyarch veteran Dave Anthony. Deviation Games had also been tasked with developing a first-party project for Sony but faced its own challenges, including significant layoffs in 2023 and eventual closure in early 2024 before announcing any projects. The pattern of closures at Sony has raised concerns about the company's commitment to nurturing first-party studios, as evidenced by the recent shutdown of Bluepoint Games, known for its remasters of titles like Demon's Souls and Shadow of the Colossus.

Broader Implications of Layoffs

The closure of Dark Outlaw Games is part of a broader trend at Sony, which has seen multiple first-party studios shuttered in recent months. Alongside Dark Outlaw, Bluepoint Games was closed after failing to secure new projects despite attempts to pitch remakes and spin-offs. This trend reflects a strategic pivot within Sony, which appears to be reassessing its investment in first-party game development and mobile gaming.

Official Statements & Responses

In a statement to PC Gamer, a Sony spokesperson emphasized the company's need for "strategic adjustments" to ensure long-term sustainability, expressing gratitude for the contributions of affected employees. The spokesperson did not provide specific details regarding the number of layoffs or the future direction of the studio.

Criticism & Opposition

Industry observers have criticized Sony's approach to studio management, highlighting the rapid closures of multiple first-party studios as indicative of a troubling trend. Critics argue that this pattern may undermine the development of unique and innovative gaming experiences that are often fostered in smaller, dedicated teams.

Conflicting Reports & Gaps

While reports consistently mention around 50 layoffs across various teams, the exact number of employees at Dark Outlaw Games remains unclear, with estimates ranging from 11 to 50. Additionally, the specific reasons behind the studio's closure, beyond the general strategic adjustments, have not been fully articulated by Sony.

Verbatim Quotes

  • "As part of this process, there were limited workforce reductions across select teams. We greatly appreciate the contributions of all those impacted." — Sony Spokesperson
  • "This decision seems to have come from Sony, which has also laid off a number of individuals in mobile development internally." — Jason Schreier, Bloomberg Reporter

The closure of Dark Outlaw Games marks another significant shift in Sony's strategy, raising questions about the future of its first-party game development landscape.