SIE-owned studios keep shutting down — 5ch: “Hardware’s next on the chopping block”

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The story

Under SIE (Sony Interactive Entertainment), reports of studio restructuring and canceled projects keep piling up: following the 2024 closures of London Studio and Firewalk Studios, we’ve now seen the shutdowns of Bluepoint Games and Dark Outlaw Games, a scaled-back rollout of physical discs, and the cancellation of a project led by Hideo Kojima. On 5ch’s hardware/industry board, posts mocking the sheer number of these “cuts” piled up, while opinions split between those questioning why the company would shrink its operations amid reportedly strong earnings, and others pushing back with data showing the division’s overall headcount has actually grown even after the reductions.

What people said

1AnonymousSep 12, 2026 16:24
2024 — SIE London Studio shuts down, Neon Koi shuts down, Firewalk Studios shuts down (the one behind Concord), Firesprite hit with major layoffs
2025 — Dark Outlaw Games founded
2026 — Bluepoint Games shuts down, Dark Outlaw Games shuts down, physical disc discontinuation announced, Kojima's project canceled
4AnonymousSep 12, 2026 16:25
How many more closures, layoffs, and cancellations are they planning…?
5AnonymousSep 12, 2026 16:25
Wait, is next quarter's earnings report gonna be an all-time record profit or something?
6AnonymousSep 12, 2026 16:26
LOL, Dark Outlaw Games got shut down the year after it was founded (DOG = Dark Outlaw Games)
11AnonymousSep 12, 2026 16:28
Is Insomniac gonna be on this list next year??
13AnonymousSep 12, 2026 16:29
Re: #11
They're basically the only ones actually doing solid work right now, so no way, lol
15AnonymousSep 12, 2026 16:30
Re: #11
Depends entirely on how Wolverine sells
16AnonymousSep 12, 2026 16:30
Shrinking the PlayStation market seems to be the set plan at this point, so I think they want to cut spending as much as possible
22AnonymousSep 12, 2026 16:31
Re: #16
Why scale down when earnings are supposedly strong…?
Doesn't make sense to me
27AnonymousSep 12, 2026 16:32
It'd still be one thing if what's left after all the cutting wasn't stuff like Marathon and 'Space Baldy' (mocking nickname for Naughty Dog's Intergalactic: The Heretic Prophet, whose protagonist is bald)
37AnonymousSep 12, 2026 16:34
Re: #27
There's also stuff like 'Blackout Dawn 2' and 'Baldy Bride' (derisive nicknames fans use for other unreleased PlayStation projects), but between all the cost-cutting they genuinely have nothing left in the chamber
31AnonymousSep 12, 2026 16:33
Thanks to those decisions
severance payouts and all
they managed massive cost savings

and wouldn't you know it, revenue roughly doubled

What brilliant management
51AnonymousSep 12, 2026 16:37
Re: #31
Fiscal year-end
G&NS division headcount

March 2021
9,600
March 2022
10,200
March 2023
12,700
March 2024
12,700
March 2025
12,100
March 2026
12,300


Far from cutting back, headcount just keeps climbing
90AnonymousSep 12, 2026 16:54
Re: #51
It hasn't grown since 2023 though
42AnonymousSep 12, 2026 16:35
This is genuinely foreshadowing — hardware is what gets cut next
Once it's already started, you can see where the road leads


43AnonymousSep 12, 2026 16:35
Seriously, what they're doing makes no sense

How does a company that can drop ¥500 billion on Bungie end up like this
52AnonymousSep 12, 2026 16:38
Re: #43
It's precisely because they lost big on Marathon and Concord that they're cutting Kojima's project (Kojima Productions' game) and going into austerity mode
60AnonymousSep 12, 2026 16:40
Naughty Dog, Guerrilla, Santa Monica Studio

None of these three have put out a single brand-new game since their PS4-era cross-gen titles — zero all-new PS5 games between them
64AnonymousSep 12, 2026 16:43
Re: #60
That's rough

Meanwhile Kojima's studio has been putting out a game every three years since going independent
68AnonymousSep 12, 2026 16:45
Re: #60
Just looking at the results, yeah, of course they'd get cut
No idea what's actually going on behind the scenes though
67AnonymousSep 12, 2026 16:45
How third parties are positioning themselves
FF7's relaunch, name-dropping Nintendo
FromSoftware going Nintendo-exclusive (what's even the point?)


Persona and Kojima's game heading to the Xbox brand

It's not just a feeling — this kind of exclusive-dealing maneuvering keeps increasing
71AnonymousSep 12, 2026 16:46
Re: #67
And Capcom's throwing every one of its flagship titles onto Switch 2 as multiplatform releases too
77AnonymousSep 12, 2026 16:49
Insomniac's in a precarious spot too — feels like they could get hit with brutal layoffs depending on how Wolverine sells
88AnonymousSep 12, 2026 16:53
Re: #77
Yeah, Insomniac is scary too
The first reveal of Wolverine was 5 years ago, and according to leaks development has run around 7 years
Leaks say the game's systems got reworked multiple times, including at least one major overhaul

If it flops after taking this long, that seems like exactly the kind of thing that'd set Sony off
78AnonymousSep 12, 2026 16:49
When are these guys ever gonna put out a brand-new game?
It's nothing but ports



79AnonymousSep 12, 2026 16:49
The studio that made The Last of Us is behind 'Space Baldy' — how did this ever get greenlit
87AnonymousSep 12, 2026 16:52
Re: #79
They got forced to make something they didn't even want to make, like that Last of Us Online thing, which then got scrapped — and on top of that we get 'Space Baldy'

If this doesn't sell, Sony's own execs should be the ones held responsible first
81AnonymousSep 12, 2026 16:50
What was that Marvel fighting-spirit game's studio again?
Feels like they'll end up on the next round of studio closures too
83AnonymousSep 12, 2026 16:51
Re: #81
If it means Ark gets shut down, I'm all for it
Not sure SIE actually has the authority to do that though
82AnonymousSep 12, 2026 16:51
What new IP has even come out on 'Trash-Station 5'? (a derisive nickname for the PS5)
I can only think of maybe four: Returnal, Saros, Concord, and Destruction AllStars, which already got its servers shut down
89AnonymousSep 12, 2026 16:53
Re: #82
There's also Stellar Blade

It was a hit, but the developer got furious over Sony's 'slave contract' and the deal ended, lol
92AnonymousSep 12, 2026 16:56
Wolverine itself will probably sell reasonably well
Metascore has nothing to do with sales anyway

Crimson Desert has a similar Metascore and sold 6 million
Meanwhile Saros scored an 88 and bombed hard
In the end it's just about how many people actually want the game — the score has nothing to do with it
100AnonymousSep 12, 2026 17:00
Re: #92
Will it actually sell as a PS5 exclusive though…

Also, Crimson Desert responded to negative Steam reviews immediately, pushing out a patch within like 3 days, and has kept updating ever since
96AnonymousSep 12, 2026 16:59
Re: #92
Most of Crimson Desert's sales are on PC, what are you even talking about?
98AnonymousSep 12, 2026 16:59
If they're gonna switch to a generic off-the-shelf platform
Just pick Android or Windows already, lol
102AnonymousSep 12, 2026 17:01
Re: #98
Isn't Windows off the table?

When they sold off VAIO, they'd have signed a contract restricting them from re-entering the PC business
101AnonymousSep 12, 2026 17:00
So what happens once you snap out of the brainwashing? Turns out they just use PC as a club to bash Nintendo with instead — doesn't seem like much has actually changed
104AnonymousSep 12, 2026 17:03
Re: #101
It's the classic move of 'if the thing I worship looks like it's losing, drag the winner down with it so everyone loses'
The brainwashing hasn't worn off at all
106AnonymousSep 12, 2026 17:05
Re: #1
SIE is shifting toward actively backing Chinese and Korean games

Background and key points of this discussion

Since shutting down its Japan Studio in 2021, SIE has repeatedly restructured its portfolio of studios, including acquired ones, and the recent string of closures and canceled projects discussed here is an extension of that pattern. Opinion in the thread split over how earnings can look strong even as the business appears to be shrinking at the same time — some argued the cost-cutting is what’s boosting profit margins, while others saw it as simply reining in investment in new IP development. One reply also pointed to overall group headcount figures, which had actually trended upward rather than down, a detail that shows studio closures don’t necessarily line up one-to-one with the group’s total staffing moves. Worth keeping in mind while reading: it would be premature to conclude, based on the sheer number of closures alone, that the organization’s overall headcount or investment is shrinking.

※This article is compiled and summarized from the 5ch (Hardware/Industry (Geha)) thread “[Sad News] SIE Has Apparently Made a Habit of Cutting Things Loose Lately lolololol“.

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