PlayStation is reportedly in the process of winding down Sony Japan Studio – the company's renowned development arm, responsible for the likes of Knack, Puppeteer, Patapon, Ape Escape, and Gravity Rush – with the "vast majority" of staff already having been let go.
Sony Japan Studio is PlayStation's oldest first-party developer, having been established in 1993, and has frequently collaborated with external developers on some of PlayStation's most iconic titles, including Bloodborne, Shadow of the Colossus, and Demon's Souls.
The studio's last solo effort, however, was Knack 2 in 2017, and PlayStation's decision to wind down development efforts at Sony Japan is – according to a new report by Video Game Chronicles – simply a result of the fact the team hasn't been profitable enough in recent years.
