Netflix reduces its internal game-development operation
Netflix is closing two more video game studios as it narrows its approach to developing games in-house. The latest closures affect Los Angeles-based Night School Studio and Helsinki-based Moonloot.
Night School, the team behind the acclaimed Oxenfree series, was acquired by Netflix in 2021. Moonloot was established in 2022 and had not yet released a game. The closures were first reported by Game File.
These decisions follow several other changes to Netflix’s gaming business. The company closed its high-profile Team Blue studio in 2024, shut Boss Fight Entertainment last year and later sold cozy game developer Spry Fox back to its founders.
There has also been disruption elsewhere in Netflix’s publishing network. Refactor Games, which worked on FIFA World Cup: Launch Edition, recently cut 85% of its workforce after publisher Delphi Interactive reportedly withdrew its funding.
A tighter focus for Netflix games
Netflix says its priorities now centre on children’s games, party experiences, story-led projects and titles designed to appeal to a broad audience. Recent releases include Toca Boca Jr Kitchen, described as an open-ended cooking game for children, and Netflix Minigolf, a couch co-op title featuring courses inspired by Stranger Things, Squid Game and Bridgerton.
A Netflix spokesperson said the company saw an opportunity to be more focused in its execution and was making organisational changes to align the business with those priorities.
What happens to Night School Studio?
Night School became known for Oxenfree, its supernatural adventure released in 2016. The studio followed it with Afterparty and, after joining Netflix, released Oxenfree 2: Lost Signals and the mobile game Thronglets, which drew inspiration from Black Mirror.
Its latest release was Unhinged, which arrived six weeks before the studio’s closure. The approximately 30-minute, first-person horror game stars Zoë Kravitz, Sadie Sink and Troy Baker. It is streamed through Netflix on televisions, with a phone serving as the controller.
The dual-screen format made Unhinged an unusual experiment for the service and suggested one possible direction for its gaming ambitions. Netflix co-CEO Greg Peters said recently that the title had produced “really solid numbers”.
Moonloot had not launched its first game
Moonloot was founded in Helsinki in 2022 and was reportedly developing a life simulation game in the style of Animal Crossing. The project had not reached release before the studio was shut down.
Netflix is also reducing staff across its wider games division, although the company has not disclosed how many employees are affected.
Why this matters for players
Netflix’s retreat from several internal studios shows a shift away from building a large portfolio of owned development teams. Its remaining strategy appears more selective, with an emphasis on accessible formats and games that connect with its existing entertainment audience.
For readers interested in dedicated gaming hardware rather than streaming, RETROCADE’s Arcade Blog covers arcade-industry news, while the Arcade Machine Buying Guide explains how to choose a suitable cabinet. Compact setups can also be explored through the range of bartop arcades.
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