Sony Shuts Down Dark Outlaw Games: Another Blow to PlayStation’s Live-Service Ambitions

In a move that underscores Sony’s ongoing retreat from its once-ambitious push into live-service gaming, the company has officially shuttered Dark Outlaw Games, a first-party studio led by veteran Call of Duty producer Jason Blundell. The news, first reported by Bloomberg’s Jason Schreier, marks yet another casualty in what appears to be a strategic pivot away from multiplayer-focused titles.

Dark Outlaw Games was founded with high expectations, given Blundell’s pedigree. Before leading this studio, he headed Deviation Games, an independent studio that was also developing a PlayStation-exclusive title before its closure. Blundell’s career at Activision included work on Call of Duty 3 and multiple entries in the Black Ops series, where he served as director for both the campaign and Zombies mode in Call of Duty: Black Ops III, as well as the career and Zombies modes in Call of Duty: Black Ops 4. His expertise in multiplayer game development made him a natural choice to lead a PlayStation first-party studio.

While Dark Outlaw Games never publicly announced its project, industry insiders speculate it was likely working on a multiplayer title, possibly leveraging Blundell’s experience with online gaming. The studio’s shutdown comes amid broader restructuring at PlayStation, including cuts to mobile development teams.

This closure is part of a troubling pattern for Sony. In February, the company shut down Bluepoint Games, known for its masterful remakes like Demon’s Souls, after the studio attempted to pivot to a live-service God of War title. The October 2024 closure of Firewalk Studios followed the catastrophic failure of Concord, a multiplayer shooter that reportedly cost hundreds of millions to develop but failed to gain traction. Even Naughty Dog, one of Sony’s most prestigious studios, officially abandoned its standalone The Last of Us multiplayer project in December 2023.

The carnage extends beyond these closures. Sony’s earlier investments in live-service games now appear to be a cautionary tale of overambition in an increasingly competitive market. The company’s strategy seems to be shifting back toward single-player experiences and established franchises, though it hasn’t completely abandoned multiplayer gaming.

Sony still maintains several multiplayer projects in development or active service. These include two Horizon Zero Dawn spin-offs: a co-op game from original developer Guerrilla Games and a mobile MMORPG from NCSoft. Haven Studios continues work on Fairgame$ despite the departure of founder Jade Raymond. Arrowhead Game Studios’ breakout hit Helldivers 2 remains popular, while Bungie continues supporting Destiny 2 and developing Marathon. Even Gran Turismo 7 could be considered part of Sony’s online portfolio.

The pattern is clear: Sony’s aggressive push into live-service gaming has largely failed to deliver the recurring revenue and player engagement the company hoped for. High-profile failures like Concord and the struggles of other multiplayer initiatives have likely contributed to this strategic retreat. The gaming industry has become increasingly wary of the live-service model, with many players and critics expressing fatigue over games designed to extract maximum monetization rather than deliver complete experiences.

For Jason Blundell and the talented developers at Dark Outlaw Games, this shutdown represents another setback in an industry where studio closures have become disturbingly common. The question now is whether Sony will continue to scale back its multiplayer ambitions or if it will attempt another pivot in the future.

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