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After reading Jason Schreier's article, as unfortunate as it sounds, I kind of get why Bluepoint was shut down.

They simply weren't ready to be a studio that made original content. They pitched live service GoW despite many claiming Sony forced them, pitched a SoTC PS5 version, they wanted to work on a GoT spinoff but couldn't do it without the help of Sucker Punch, and got their BloodBorne remake approved but ultimately shut down by From. They essentially operated as a support studio that had no interest in doing remakes.