Sony Shuts Down Dark Outlaw Games, Cuts PlayStation Staff – Report

by Anika Shah - Technology
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Sony Shuts Down Dark Outlaw Games, Led by Former Call of Duty Director

Sony has closed Dark Outlaw Games, a first-party studio headed by Jason Blundell, a veteran of the Call of Duty franchise. The closure, announced internally on Tuesday, March 24, 2026, marks another shift in Sony’s strategy regarding live-service game development. The studio’s shutdown coincides with staff cuts within PlayStation’s mobile development division, Bloomberg reports.

Blundell’s Previous Ventures

Prior to leading Dark Outlaw Games, Blundell was at the helm of Deviation Games, an independent studio that also developed a PlayStation game before its closure in 2024. Deviation Games initially secured over $200 million in funding from Sony for a live-service project, but the funding was later withdrawn due to development challenges, leading to the studio’s dissolution. Kotaku details this prior venture.

A Pattern of Studio Closures

Dark Outlaw Games’ closure follows a recent trend at Sony, which shuttered Bluepoint Games in February after attempts to develop a live-service God of War game. Firewalk Studios was also closed in October 2024 following the unsuccessful launch of the multiplayer shooter Concord. Naughty Dog abandoned plans for a standalone multiplayer version of The Last of Us in December 2023. Engadget highlights this pattern.

Blundell’s Career Background

Jason Blundell has a long history with the Call of Duty series. He began as a programmer and producer at Activision, later joining Treyarch where he contributed to multiple Call of Duty: Black Ops titles. He served as the director for the campaign and Zombies mode of Call of Duty: Black Ops III, and the career and Zombies modes of Call of Duty: Black Ops 4.

Sony’s Shifting Strategy

These closures suggest a retreat from Sony’s earlier ambitions in the live-service multiplayer gaming space. While Sony continues to invest in online multiplayer titles such as the Horizon spin-offs, Helldivers 2, Destiny 2, Marathon, and Gran Turismo 7, the recent studio closures indicate a reassessment of its approach to this market. Reddit discussions reflect concerns about Sony’s direction.

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