PlayStation has shut down Dark Outlaw Games, a newly formed first-party studio, as part of another round of cuts that includes layoffs and a shift in strategy.
The news was initially reported on ResetEra and later confirmed by Bloomberg journalist Jason Schreier, who stated, “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).” He added that “PlayStation is also making other cuts including in mobile development. Around 50 people laid off.”
Schreier later clarified details regarding Blundell’s previous project, noting, “Correction: the previous studio Deviation Games was not owned by PlayStation; it was making a game for PlayStation. Deviation shut down before releasing that game, then PlayStation hired Blundell to start a new studio, which was shut down today.”
Dark Outlaw Games was established in 2025 as a Los Angeles based PlayStation studio, led by Blundell, who is best known for his work on Call of Duty: Black Ops and its Zombies mode. The team had reportedly been in the early stages of development and had not released any titles prior to its closure.
Alongside the shutdown, PlayStation is said to be reducing its presence in the mobile gaming space. While previously announced projects such as MLB The Show Mobile, Ratchet and Clank Ranger Rumble, and titles in partnership with NCSOFT will continue to be supported, the company indicated it will scale back further investment in mobile development to focus on a smaller number of high impact projects.
The move follows closely behind the recent closure of another PlayStation studio, signaling a broader period of restructuring within Sony’s gaming division.
