PlayStation to Close Another First-Party Studio Founded by Call of Duty Veteran Jason Blundell

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PlayStation to Close Another First-Party Studio Founded by Call of Duty Veteran Jason Blundell

**Sony Continues Cost-Cutting Measures with Closure of Dark Outlaw Games**

In a move that reflects ongoing cost-cutting measures within the organization, Sony is reportedly shutting down Dark Outlaw Games, a studio established less than a year ago by former Call of Duty lead Jason Blundell. This news comes from insider information circulated by journalist Jason Schreier, known for his reliable industry insights, and shared in a recent ResetEra thread.

### Closure Details and Implications

Details surrounding the closure remain sparse, particularly regarding the number of employees affected. Dark Outlaw Games, which was announced in early 2025, was met with enthusiasm from Blundell, who expressed his privilege in collaborating with Sony on the formation of a new first-party studio. There was notable excitement about the potential for what Dark Outlaw might develop, given Blundell’s substantial background as the co-studio head of Treyarch and a key figure behind the acclaimed Call of Duty Zombies franchise.

While the studio had yet to reveal its first project, speculation indicated a leaning towards live service games—an area where PlayStation has recently faced challenges.

In addition to the closure of Dark Outlaw, Schreier reports that Sony is also downsizing its mobile development division, laying off approximately 50 employees. This reflects a broader strategic shift away from mobile gaming, except for projects already in development.

### Recent Trends in Sony’s Studio Closures

The closure of Dark Outlaw Games is part of a troubling trend for Sony regarding the fate of its first-party studios. Just a month prior, the company shut down Bluepoint Games, known for the Demon’s Souls remake, and had also canceled a live service project from a previous studio effort, illustrating a consistent struggle with the live service model. This may suggest a reassessment of the viability of such projects within Sony’s portfolio.

Many industry observers are beginning to question Sony’s strategy in developing live service games, particularly given the recent spate of closures and cancellations. This raises important questions about the company’s long-term direction and how it might reposition itself in the evolving gaming landscape.

### Conclusion

The closure of Dark Outlaw Games and layoffs in mobile development reflect a broader trend of consolidation and cost-cutting within Sony. As the gaming industry continues to evolve, particularly with the increased reliance on live service models, the effectiveness of Sony’s current strategies will come under scrutiny. The impact of these decisions on the talent pool and company culture remains to be seen, but solidarity is extended to those affected by the recent layoffs and studio closures.

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