Sony has shut down Dark Outlaw Games, a newly formed PlayStation studio led by a Call of Duty Zombies director. According to a new leak, this may only be the beginning, with more layoffs expected across PlayStation’s US and UK divisions.
Sony Shuts Down Call of Duty Director’s New PlayStation Studio
The closure of Dark Outlaw Games was first leaked on the gaming forum ResetEra. According to a post by ‘J-Soul’, Sony PlayStation had made the decision to completely shutter the studio. Dark Outlaw Games was only formed in 2025 under Jason Blundell, who was the former Director of CoD Zombies.
“Dark Outlaw Games is closing. PlayStation formed them as an incubation studio 1 year ago under CoD Zombies veteran Jason Blundell. They were still in the early stages of their project and have not shipped anything. This is now the second game project under him that PlayStation has shut down after Deviation Games.”
The Studio Didn’t Even Last a Full Year
Dark Outlaw Games had only been open for just a year before Sony made the decision to axe it. The newly formed team had not even shipped a game or project yet before the decision was made to close the studio down.
This is also now the second studio of Blundell’s that PlayStation has shuttered in the last five years. Back in 2021, the Call of Duty veteran had left Treyarch to work at Deviation Games. However, he quickly left the team before the studio was then closed by Sony in 2024.
More PlayStation Layoffs Reportedly Coming Soon
Unfortunately, the report also claims that more layoffs will be hitting Sony PlayStation soon. While the insider notes that the number is expected to be “small,” it suggests that the company is continuing to make major cost-saving cuts behind the scenes.
Sony Is Moving Away From Mobile Games
Finally, the leak also claims that the upcoming PlayStation layoffs are due to Sony specifically moving away from making “mobile games.” So it’s possible that whatever Dark Outlaw Games was working on, it was going to be tied to a live-service or mobile game. Although that is just speculation, as we don’t even know if they had a project greenlit or not.
“There are an unspecified number of layoffs within PlayStation in the US and UK. The number is said to be small. PlayStation is moving away from the mobile game market. They will continue to support previously announced titles like MLB The Show Mobile, Ratchet & Clank: Ranger Rumble, and the NCSOFT titles. But “Outside of these games, they will be scaling back in this space” to “focus their efforts on a few select high impact projects.”
This Is Part of a Bigger PlayStation Trend
While Sony hasn’t come out and given a direct answer, insiders report that PlayStation is making cost-saving cuts across the board. The games industry in general has seen a lot of slowdown in revenue since 2025, and with the prices of hardware skyrocketing due to AI, this could be a big reason for the shutdowns.
However, it’s also noteworthy that the studio closures follow several high-profile failures from Sony PlayStation studios. The most infamous one being Concord in 2024—which reportedly cost between $200 and $400 million, and was shut down just a week after it launched. Sony also recently shocked players after closing down Bluepoint Games in February 2026.
Full List of PlayStation Studios That Have Been Shut Down
Here is a list of all PlayStation Studios that have been closed:
- Bigbig Studios – (Closed in 2012)
- Bluepoint Games – (Closed in 2026)
- Dark Outlaw Games – (Closed in 2026)
- Evolution Studios – (Closed in 2016)
- Firewalk Studios – (Closed in 2024)
- Guerilla Cambridge – (Closed in 2024)
- Incognito Entertainment – (Closed in 2009)
- Japan Studio – (Closed in 2021)
- London Studio – (Closed in 2024)
- Manchester Studio – (Closed in 2020)
- Neon Koi – (Closed in 2024)
- Pixelopus – (Closed in 2023)
- Studio Liverpool – (Closed in 2012)
- Zipper Interactive – (Closed in 2012)
Yeah, that’s quite a big list. In total, Sony has closed or divested in over 14 PlayStation Studios since 2012. The biggest closures so far include Bluepoint Games, as well as Japan Studio. However, with Dark Outlaw Games being shut down, this now marks the second major studio closure for PlayStation in 2026.
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