Dark Outlaw Games, the studio founded by former Call of Duty developer Jason Blundell, is shutting down amid bigger cuts to PlayStation overall, according to reports from gaming journalist Jason Schreier. The Los Angeles-based studio had between 11 and 50 employees and had been operating for less than a year.
Sony Interactive Entertainment established Dark Outlaw Games in March 2025 and led by Call of Duty veteran Jason Blundell. The studio was aiming to make "the next groundbreaking AAA original IP" as part of a "lean and highly efficient" development setup. However, the project remained in early stages and the studio never shipped anything.
The timing marks a striking reversal of fortune for Blundell. A year ago he described it as a privilege, noting that "Sony doesn't start up first-party studios all the time, so to have that privilege is humbling". That optimism appears to have been short-lived as the broader studio faces significant constraints.
Blundell's previous studio, Deviation, was partnered with Sony and closed in 2024. Sources told Kotaku that Deviation's initial budget was over $200 million, but Sony later pulled funding amid a messy development cycle.
Around 50 people are losing their jobs across PlayStation, including on the mobile teams, with Sony Interactive Entertainment confirming the changes were made "to support long-term sustainability". PlayStation is moving away from the mobile game market, although it will still support previously announced projects, like MLB The Show Mobile and Horizon Steel Frontiers.
The closure comes as part of a wider pattern of studio consolidation. Dark Outlaw Games' closure comes just a month after the company revealed Bluepoint Games was being shuttered. Bluepoint Games closure in February 2026 resulted in 70 layoffs, with the studio known for critically acclaimed remasters including "Shadow of the Colossus" and "Demon's Souls".
Blundell was instrumental in the creation of Call of Duty's massively popular Zombies mode during his time at Treyarch, and directed 2015's Black Ops 3. His track record at the studio had given reason for optimism when PlayStation announced the new venture, but the swift closure underscores the challenges facing even experienced developers in the current market environment.