Netflix has closed Night School Studio, the developer behind Oxenfree and the recent horror game Unhinged, signaling a significant shift away from its earlier aspirations in the interactive entertainment space. The company also shuttered Moonloot, a studio reportedly developing an Animal Crossing-like title.
This move signifies the end of Netflix's pursuit of unique, narrative-driven gaming experiences that many had hoped would become a hallmark of the service. Night School's most recent release, Unhinged, starred Zoë Kravitz and Sadie Sink and utilized a compelling blend of phones and television screens for a brief, impactful horror narrative. This game was seen by some as an indicator of Netflix's potential in the gaming sector, with Night School viewed as a "secret weapon" that could deliver innovative interactive storytelling.
In a statement to Game File, a Netflix spokesperson explained the decision was part of an effort to "be more focused in our execution," prioritizing games that are "kids games, party games, story-driven fare and games with mainstream hooks." This strategic pivot comes with job cuts within Netflix's internal games division, with the company expressing gratitude to departing employees.
Night School Studio was acquired by Netflix in 2021. Following the release of Oxenfree 2, the studio developed Thronglets, a companion game to a Black Mirror episode. This title successfully captured the essence of the show by blending god-sim and Tamagotchi elements with fourth-wall-breaking moments, earning praise for its creative execution.
The closure of Night School and Moonloot are the latest in a series of reductions to Netflix's gaming initiatives. Previously, aspirations for AAA titles at a studio led by a former Halo creative director were axed in 2024. The developer of the Squid Game game, Boss Fight, was closed in October 2025, and the creator of the cozy online game Spry Fox was sold back to its founders shortly thereafter. Additionally, Netflix's partnership with Monument Valley developer Ustwo Games resulted in the exclusive release of Monument Valley 3, which struggled to gain traction and was eventually removed from the platform.
While Netflix maintains that "Games continue to be an opportunity for us to expand the variety of entertainment we offer," the current operational focus on party games through its remaining studio, Next Games, suggests a departure from the more ambitious and artistically driven projects previously explored.