Netflix is closing Night School Studio, the developer behind Oxenfree, along with Moonloot as the company reshapes its games division around a narrower set of priorities.
A Netflix spokesperson told Game File that the revised strategy will concentrate on kids’ games, party games, story-focused projects and titles with broad mainstream appeal. Netflix cited FIFA World Cup as an example of a successful launch, despite the studio responsible for that game also later closing.
“We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” the spokesperson said.
Both Night School and Moonloot are shutting down completely. Netflix is also reducing staff across its internal development teams, although it did not provide a figure for the number of affected employees.
The company said it was grateful to the colleagues leaving the business and thanked them for their contributions, while wishing them well in the future.
Night School leaves behind a distinctive catalogue
Night School operated for 12 years and built its reputation on narrative-led games with unusual premises and strong character-driven storytelling. The studio’s closure is particularly notable for the legacy of Oxenfree, its supernatural adventure about teenagers caught in an unsettling mystery.
Originally released in 2016, Oxenfree received a sequel in 2023. Night School’s other notable work included Afterparty, released in 2019, in which two dead friends attempt to drink their way out of hell by challenging Satan.
The studio also released Unhinged for mobile in June. The game features the voice of Sadie Sink, known for Spider-Man and Stranger Things.
For readers interested in the wider games business, RETROCADE’s arcade news and editorial coverage follows developments across the industry, including the changing fortunes of game studios and platforms.
Moonloot project ends before release
Moonloot was established in 2022 and had been developing a life simulation game inspired by Animal Crossing. The studio closed before releasing a title.
The shutdowns reflect a broader change in Netflix’s approach to game development. After investing heavily in its own studios for several years, the company has increasingly moved towards external partnerships and more casual experiences.
That shift also illustrates the different ways people engage with interactive entertainment. Story-rich games such as Oxenfree are designed around atmosphere, dialogue and choice, while arcade gaming remains focused on immediate controls and repeat play. Players exploring dedicated hardware can compare options through the arcade machine buying guide, browse full-size arcade machines or consider compact bartop arcades.
Night School’s closure leaves the future of the studio’s creative work uncertain, while Moonloot’s unannounced life sim will not reach players in its planned form.
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