Layoffs have been plaguing the video game industry for the past few years now, and they’ve hit some studios especially hard, occasionally resulting in one’s abrupt closure. You’d think such a large company like PlayStation and its first-party studios would be safe, but unfortunately, it couldn’t be further from the truth.
Since 2020, the year the PS5 was released, Sony has shut down eight first-party PlayStation studios, with some closing so soon after their acquisition or formation. It’s never easy to see swaths of talented developers lose their jobs, and it’s tough to see Sony as the one pulling the trigger so often as of late.
With that in mind, here are the eight PlayStation first-party studios that have been shuttered since the PS5 was released, as well as what the studios were known for.
Every PlayStation First-Party Studio Closure Since The PS5
For this list, only studios that were closed since the PS5 launch year have been included, as it’s been an especially tumultuous time for Sony and its leadership. From failed acquisitions to studios that closed before shipping a single game, there’s simply no denying that PlayStation has seen some dark days, and there could still be even more to follow.
2020—Manchester Studio
Manchester Studio was the first to fall back in 2020, and they set a sorry precedent for some of these studios: they didn’t even get the chance to ship a single game. The virtual reality-based development team was formed in 2015, and after five years, Sony called it quits and made every member of staff redundant.
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That rounded off a difficult decade for British developers under the PlayStation umbrella, with Liverpool Studio, Guerrilla Cambridge, Bigbig Studios, and Evolution Studios all closing during the 2010s.
2021—Japan Studio
Sony coined this as a reorganisation, which saw the legendary Japan Studio restructured around Team ASOBI, the team behind the Astro franchise. Considering the success of the most recent Astro Bot, which won Game Of The Year back in 2024, it might be easy to consider the decision a success, but it still led to the closure of a PlayStation giant.
Japan Studio had a strong history with PlayStation, as it developed the likes of Ape Escape and Shadow of the Colossus, two huge franchises with immense history and fan adoration. It was tough to see the studio go, but when you compare it to other studios, at least it didn’t result in the loss of hundreds of jobs.
2023—PixelOpus
PixelOpus was one of the smaller PlayStation studios to bite the bullet, as the team behind Concrete Genie was dismissed back in June 2023. It arrived following an internal review, where PlayStation deemed the studio didn’t meet the organization’s ‘short and long-term strategic objectives.’
2024—London Studio
The London Studio closure was part of one of the heaviest waves of layoffs in the video game industry, as Sony laid off around 900 employees across a variety of divisions. Amidst this, London Studio was completely shuttered, which was well known for its diverse catalogue of series, ranging from SingStar to Blood & Truth.
However, it wasn’t just London Studio that was hit, as even titans such as Naughty Dog, Insomniac Games and Guerrilla Games were impacted. Numerous unannounced games were cancelled, and it might have spelt the beginning of the end for another studio in the months to come…
2024—Firewalk Studios
Concord. Everyone remembers Concord. What was meant to be PlayStation’s own attempt at a hero-shooter turned out to be a monumental market flop, and in today’s cut-throat industry, that was more than enough to see its development studio, Firewalk, shut down for good.
In fact, the game was famously pulled from stores just a few weeks after its launch, with refunds being offered to anyone who bought the game. Over 170 people lost their jobs, just a year after Sony acquired the studio, where they promised to ‘help grow’ its live service titles.
2024—Neon Koi
Neon Koi was another case of a studio closing before ever releasing a game, and it’s a pattern that’s growing all too familiar. The studio was purchased under the name Savage Game Studios in 2022, with mobile games being its primary focus.
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Well, before long, it appeared that Sony wanted to shift its mobile focus, and Neon Koi was first up on the chopping block. Sony tried to offer work to those who lost their jobs, but almost 40 people were laid off amidst the closure of the studio.
2026—Bluepoint Games
Once again, Sony closed a first-party studio that it acquired just years prior, but this one truly confused the masses. Bluepoint Games was responsible for incredible remakes of absolute classics, such as Shadow of the Colossus and Demon’s Souls.
More recently, though, Bluepoint was working on an unannounced live-service God of War game, but that was cancelled back in 2025 when PlayStation began to backtrack on its live-service approach. It seems like the studio never truly recovered from that cancellation, and before long, over 70 people lost their jobs.
2026—Dark Outlaw Games
Now it’s time for the most recent casualty of Sony’s mismanaged decision-making: Dark Outlaw Games. Like many on this list, the developers were never given the chance to even announce a game, let alone release one to the public.
It was led by Treyarch veteran Jason Blundell and staffed by the remnants of Deviation Games, another studio partnered with PlayStation, which shut down in 2024. Whilst no project was announced, based on the team’s experience, it was likely a first-person shooter, potentially in the likeness of Call of Duty Zombies.
It’s a sad list to read, and one that could continue to expand based on recent industry trends. What do you make of the mass layoffs the industry seems to continually face? Share your thoughts in the official Insider Gaming Discord Server.
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Charlie is one of Insider Gaming's Guides Writers who's been in the gaming industry for a little over a year. Unfortunately for him, he enjoys every video game genre out…
More from Charlie Champion
More on the way. Nixxes I think is gone, Valkyrie, Asobi, Media Molecule, LFG, Firesprite, all those should be on watch and Housemarque. Saros costs more than Returnal and that was a flop. Even if it’s a moderate success they may shut down still.