Sony Shuts Down Dark Outlaw Games, Scales Back Mobile Efforts

Sony has reportedly shuttered Dark Outlaw Games, a first-party partner studio led by former Call of Duty producer Jason Blundell, and is reducing its investment in mobile gaming. The closure marks another in a series of studio closures by Sony over the past year, signaling a shift in strategy away from live-service multiplayer games.

Dark Outlaw Games Closure

Dark Outlaw Games, founded by Jason Blundell at Sony’s behest, was quietly announced in March 2025 after being rumored the year prior. The studio had been “working away in the shadows” on a first-party project for Sony, but never publicly revealed the details of its game IGN. Blundell previously founded Deviation Games, which also developed a first-party Sony project before closing in 2024.

This is the second project under Blundell that Sony has shut down. Deviation Games, Blundell’s previous venture, faced similar challenges, with layoffs occurring in 2023 before its eventual closure without announcing its project Engadget.

Broader Trend of Studio Closures

The closure of Dark Outlaw Games follows a pattern of Sony shuttering first-party studios. Recent closures include Concord developer Firewalk Studios in 2024 and Bluepoint Games, known for the Demon’s Souls and Shadow of the Colossus remakes, in February 2026 IGN.

Shift Away from Mobile Gaming

Alongside the studio closure, Sony is scaling back its mobile gaming efforts. While the company will continue to support existing titles like MLB The Indicate Mobile, Ratchet & Clank: Ranger Rumble, and games developed with NCSOFT, it will reduce investment in new mobile projects to focus on “a few select high impact projects” ResetEra.

Approximately 50 positions have been affected by the combined layoffs in studio closures and mobile development IGN.

Key Takeaways

• Sony has closed Dark Outlaw Games, a first-party studio led by Jason Blundell.
• This is the second studio led by Blundell that Sony has shut down.
• Sony is reducing its investment in mobile gaming, focusing on a smaller number of high-impact projects.
• The closures are part of a broader trend of Sony streamlining its first-party studio portfolio.