Reported on Tuesday, March 24, 2026, PlayStation is shutting down Dark Outlaw Games, one of its first-party studios, only a year after its founding and before it even announced and shipped a game. The current details about the shutdown are unknown. This marks the second studio PlayStation has announced for shutdown this year, with Bluepoint Games, a studio PlayStation acquired in 2021, being the first. It is also being reported that PlayStation is making cuts to its mobile department, and it is letting go of around 50 people.
Dark Outlaw Games was studio founded last year, in March 2025, by former Call of Duty Zombies lead Jason Blundell. During the studio’s inception, they teased that they were working on something behind closed doors and would come forth once they had something concrete. But now, one year later, the studio will be closing its doors before it can create and share it with the world. With the details unknown, this marks the second studio founded by Blundell to shut its doors for good, as his first studio, Deviation, was shut down back in 2024. It is unknown what Blundell’s next move is after this second shutdown.
2026 has been a rough year for PlayStation Studios, with Dark Outlaw Games shutting down without releasing a single title, leaving many in the gaming industry worried. This marks the year’s second studio shutdown by PlayStation, as Bluepoint Games announced its closure in February 2026. This marks another bleak point in the year, and with the PlayStation mobile department also facing layoffs with around 50 people losing their jobs, this is bleak day for the gaming industry, as with this announcement, another set of layoffs has occurred with Epic Games. Many are wondering what is next, and whether more studios will face shutdown and the layoffs continue, or has it reached its end? Only time will tell.