Over the past few years, both Microsoft (Xbox) and Sony (PlayStation) have been rapidly buying up game development studios. Xbox made some particularly large purchases, most notably Bethesda/ZeniMax Media, while PlayStation initially focused on more targeted acquisitions. From 2018 to 2022, Xbox added Playground Games, Ninja Theory, Undead Labs, Compulsion Games, Obsidian Entertainment, inXile Entertainment, Double Fine Productions, ZeniMax Media, and Activision Blizzard King to its portfolio. During the same period (2019-2022), PlayStation acquired Insomniac Games, Nixxes Software, Firesprite, Bluepoint Games, Housemarque, Valkyrie Entertainment, Haven Studios, Bungie, Neon Koi, and Firewalk.
Years after the acquisitions, the outcome has been harsh for everyone involved. Microsoft has made significant layoffs at Activision Blizzard King and within its Xbox game studios, and Sony is facing similar challenges. The recent closure of Bluepoint Games came as a surprise to many. Looking at Sony’s studio purchases since 2019, it’s apparent that most haven’t thrived – around 60% have either had major layoffs or been shut down completely.
Bluepoint Games (Demon’s Souls, Shadow of the Colossus)
Bluepoint Games has built a reputation for creating excellent remasters and remakes for PlayStation consoles. While they’d worked on popular titles like the Demon’s Souls remake (a launch game for the PS5) and Shadow of the Colossus for years, Sony only fully acquired the studio recently. Bluepoint also helped Santa Monica Studio with God of War Ragnarok, which is part of a planned trilogy remake. After finishing work on Ragnarok, Bluepoint began developing a live-service God of War game that was ultimately canceled. The studio remained quiet for a while, until Sony announced that Bluepoint Games will be closing in March 2026.
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Insomniac Games (Marvel’s Spider-Man, Marvel’s Wolverine)
As a PlayStation fan, I’ve always loved what Insomniac Games has done – they’re the team behind the amazing Marvel’s Spider-Man games, and I’m super hyped for Marvel’s Wolverine coming in 2026. But even a studio as successful as them hasn’t been safe from the recent layoffs happening across the gaming industry. Sony did a big workforce reduction in 2024, and unfortunately, Insomniac was affected. They never actually said how many people lost their jobs, which is a bummer.
Nixxes Software (Ports, Support)
Nixxes Software is a support studio within PlayStation Studios, specializing in porting games to different platforms. Unlike some other studios, there haven’t been any reports of job cuts at Nixxes, likely because of their unique skillset. While the recent 2024 layoffs affected many in the industry, Nixxes appears to be secure, at least for now, thanks to its valuable role in supporting PlayStation’s game releases.
Firesprite (Horizon Call of the Mountain)
Firesprite worked with Guerrilla Games on developing Horizon Call of the Mountain for PSVR2, and also contributed to Star Citizen. The studio was specifically mentioned as being affected by the layoffs announced in February 2024.
A 2024 Eurogamer report indicates that after Sony acquired Firesprite, developers working on Horizon Call of the Mountain were subjected to intense crunch time, leading to staff departures and leadership changes. Following this, Sony’s XDev team stepped in to help, but reports of a negative and unhealthy work environment emerged.
Housemarque (Returnal, Saros)
Housemarque, the studio behind the PS5 game Saros, has been acquired by Nixxes without any reported job losses. Their newest game, Saros, came out in April.
Valkyrie Entertainment (Support)
Valkyrie Entertainment, a studio with a strong track record of helping develop games for many companies, has been acquired by PlayStation Studios as Sony continues to expand its internal teams. This acquisition, like those of Housemarque and Nixxes, happened without any significant job cuts.
Haven Studios (Fairgames)
Jade Raymond, the creator of Assassin’s Creed, started Haven Studios in 2021. PlayStation bought the studio in 2022, but Raymond departed in 2025. Currently, Haven Studios is developing a live-service heist game called Fairgames. Although the studio is still operating and hasn’t announced major layoffs, several talented individuals have left, hinting at potential problems with keeping employees.
Bungie (Destiny, Marathon)
Bungie, the company behind popular games like Halo and Destiny 2, is getting ready to launch a new game called Marathon in March. However, since being acquired, Bungie has experienced multiple rounds of job cuts, including around 100 employees in October 2023 and approximately 220 in July 2024.
Neon Koi (Mobile)
Sony bought the mobile game developer Neon Koi (originally known as Savage Game Studios) in 2022 to grow its presence in mobile gaming. However, the studio was closed down in October 2024.
Firewalk (Concord)
Sony bought Firewalk Studios in April 2023. Their team released the game Concord in August 2024, but the game wasn’t well-received, and the studio closed just two months later in October 2024.
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2026-02-20 21:05