Another First-Party Studio Goes Dark
PlayStation is reportedly closing Dark Outlaw Games, the first-party studio formed just last year by former Call of Duty leader Jason Blundell. It’s a swift reversal for a team that only recently joined Sony’s roster, and it arrives amid fresh layoffs elsewhere inside the company.
The move was first flagged by Bloomberg’s Jason Schreier and surfaced via a ResetEra thread. Headcount for Dark Outlaw hasn’t been disclosed, and Sony hasn’t announced what the studio had in development. Even so, the timing makes this closure stand out: Dark Outlaw was introduced in 2025 with public backing from PlayStation and a prominent lead in Blundell, who previously co-headed Treyarch and helped create Call of Duty’s Zombies mode.
Schreier also said cuts extend beyond this one studio. According to his post, PlayStation is trimming its mobile efforts, with around 50 people laid off as part of a shift away from new mobile initiatives outside of titles already in production.
More layoffs today: PlayStation is closing Dark Outlaw Games, a studio formed last year by former Call of Duty lead Jason Blundell (his previous PlayStation studio, Deviation, was shut down in 2024). PlayStation is also making other cuts including in mobile development. Around 50 people laid off. — Jason Schreier ( @jasonschreier.bsky.social ) March 24, 2026 at 6:10 PM
Dark Outlaw’s project was never revealed, but Blundell’s track record had fans expecting something in the live-service or co-op space. During the studio’s announcement, he called it “such a privilege to be able to do it with Sony as a new first-party studio,” adding, “Sony doesn’t set up first-party studios all the time. To have that privilege is humbling, it’s really nice. I’m really excited.” Those comments painted a picture of a long-term partnership—one that now appears to have ended before a debut trailer.
What Was Dark Outlaw Building?
Without an official reveal, details are thin. Blundell’s history with large-scale, repeatable modes like Zombies suggested a multiplayer-forward plan, potentially aligned with Sony’s broader interest in recurring revenue games. That push has seen mixed traction across the industry, and internally at PlayStation as well. The closure leaves open questions about asset transfers, prototypes, and whether any portion of Dark Outlaw’s work will be repurposed elsewhere inside PlayStation Studios.
This isn’t Blundell’s first halted PlayStation venture. Schreier noted that his previous PlayStation-backed outfit, Deviation Games, shut down in 2024 after its own unannounced project stalled. Taken together, two consecutive cancellations tied to the same high-profile creative lead point to shifting priorities inside Sony—or, at minimum, to a tougher greenlight environment for ambitious multiplayer bets.
More Cuts Hit PlayStation Mobile
Alongside the studio closure, Schreier reported approximately 50 layoffs in PlayStation’s mobile group. ResetEra chatter frames this as part of a broader pullback from mobile, aside from projects already deep in development. It’s a notable course correction for a division Sony had been building to complement console releases and tap new markets. If the scale of investment is being reduced, expect fewer experimental mobile tie-ins in the near term.
Mobile has promised reach but often demands different design, tech, and monetization rhythms than console development. For a platform holder that just faced delays, cancellations, and restructurings in its live-service lane, narrowing the mobile slate could be a bid to consolidate resources around fewer, clearer priorities.
A Pattern of Pivots and Closures
Dark Outlaw’s fate follows a rough stretch for PlayStation’s first-party lineup. In February, Sony shut down Bluepoint Games, the acclaimed team behind the Demon’s Souls remake, after a year marked by turbulence that included a reported cancellation of a live-service God of War project. Each move chips away at a portfolio long defined by prestige single-player hits, while the company tests—and sometimes retreats from—new service-driven directions.
How this shapes 2026 and beyond is the real question. Fewer first-party teams and a tighter pipeline could mean longer gaps between marquee releases. There’s also the human cost: talent displaced from multiple studios in quick succession, now competing for limited roles as the wider industry trims headcount. If Sony is recalibrating its strategy, the results will be measured not just in balance sheets, but in whether the next wave of PlayStation projects feels focused and confident.
All eyes now turn to Sony’s next showcase and earnings call. Does PlayStation double down on a smaller number of live-service titles, or swing back toward its single-player core? Either way, closing a young studio like Dark Outlaw before it ever showed its hand sends a clear message: every project has to justify itself fast. If the company wants to steady the ship, it’ll need to pair those hard choices with a slate that restores faith—and gives its remaining teams room to breathe.
