Netflix is closing two more of its internal video game development studios, Los Angeles-based Night School Studio and Helsinki-based Moonloot, as the company continues to scale back its gaming ambitions. The moves signify a significant reshuffling of Netflix's strategy in the interactive entertainment space.
Night School Studio, known for the acclaimed supernatural adventure game Oxenfree and its sequel Oxenfree II: Lost Signals, was acquired by Netflix in 2021. Moonloot, founded in 2022, had not yet released a game but was reportedly developing a life simulation title. Game File first reported on the studio closures.
These closures follow a pattern of retrenchment for Netflix's gaming division. In 2024, the company shut down its Team Blue studio, and last year saw the closure of Boss Fight Entertainment, the developer behind Squid Game: Unleashed. Additionally, cozy game developer Spry Fox was sold back to its founders. The recent layoffs at Refactor Games, which worked on Netflix's FIFA World Cup: Launch Edition, also highlight the volatile nature of the company's gaming endeavors.
Netflix has stated that its revised gaming strategy will prioritize a more focused approach, concentrating on kids' games, party titles, narrative-driven experiences, and games with broad mainstream appeal. Recent releases that align with this new direction include Toca Boca Jr Kitchen, an educational game for children, and Netflix Minigolf, a multiplayer party game featuring courses inspired by popular Netflix properties like Stranger Things and Squid Game.
A spokesperson for Netflix explained the organizational changes are intended "to match those priorities." While the company confirmed job cuts within its broader games team, the exact number of affected employees has not been disclosed.
Night School Studio's most recent release, the interactive horror game Unhinged starring Zoë Kravitz and Sadie Sink, was lauded as an "intriguing experiment" with potential for Netflix's gaming future, according to Polygon. Netflix co-CEO Greg Peters noted that the game had achieved "really solid numbers."