A PlayStation veteran says Japan studio was closed because the team couldn't make games that drive hardware sales in the same vein as major franchises like God of War or Uncharted. In the years following Japan Studio's closure in April 2021, questions have persisted regarding how Sony justified shutting down the historic developer behind Ape Escape, Shadow of the Colossus, and Ico.

Quick Facts

  • Japan Studio was shut down by Sony in April 2021.
  • Former SIE president Shuhei Yoshida addressed the closure during a speech at the Computer Entertainment Developers Conference on July 22, 2026.
  • Yoshida explained that Sony wanted to drive hardware sales with AAA titles like God of War and Uncharted rather than smaller AA games suited for platforms like the PlayStation Vita.
  • While Sony claimed the studio was reorganized into Astro Bot developer Team Asobi, sources reported that most of the team was let go and key developers left prior to the merger.

Shuhei Yoshida on Why Japan Studio Shut Down

Speaking at the Computer Entertainment Developers Conference, Shuhei Yoshida revealed that players around the world continue to ask him about Sony's justification for closing Japan Studio. Yoshida admitted he expressed similar sentiments at the time, calling the decision unbelievable given the studio's catalog of creative games.

Yoshida noted that as head of development, he worried about creators like Silent Hill creator Keiichiro Toyama and other Japanese developers at the studio. While those creators came up with many creative ideas, their games were not large in scale. Yoshida explained that while AA games fit the PlayStation Vita well, Sony was slowly shifting to AAA titles on the PlayStation 4 and PlayStation 5.

PlayStation wanted to drive hardware sales with games like God of War and Uncharted because that style of game was in demand, making it difficult for Japan Studio to successfully launch a new console series.

The Aftermath of the Closure

Following the shutdown, Sony maintained that Japan Studio had simply been re-organized and absorbed into Team Asobi. However, sources reported to VGC that the vast majority of Japan Studio's staff were let go ahead of the merger. Several key creatives, including Demon's Souls producer Teruyuki Toriyama and Gravity Rush director Keiichiro Toyama, departed from Team Japan months before the formal closure.