Netflix has closed its Los Angeles-based game studio Night School, the developer behind the critically acclaimed psychological thrillers Oxenfree and Oxenfree 2: Lost Signals. The streamer also shuttered Moonloot, its Helsinki, Finland-based studio, which had not yet released any titles but was working on an unannounced life-simulation project.
A spokesperson for Netflix confirmed the closures, stating that the company is looking to be more focused in its game development efforts. "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 told GameFile. "We are incredibly grateful to the talented colleagues we’re saying goodbye to today. We thank them for all their contributions to Netflix, and wish them the best. Games continue to be an opportunity for us to expand the variety of entertainment we offer Netflix members."
This decision comes shortly after Night School released Unhinged, a narrative-driven horror game developed in collaboration with director Zach Cregger. The game, which features voice work from Sadie Sink and Zoë Kravitz, launched on June 30 and was described by reviewers as a "fun and scary choose-your-own-adventure" experience.
Despite the studio's closure, former Night School staff expressed pride in their work. One former employee shared on LinkedIn that they were "so proud of what we accomplished, and millions of people agree that we made a great product!" The studio's latest title, Unhinged, was released just six weeks prior to the announcement of the closure.
This marks the latest in a series of game studio closures by Netflix. The streamer previously shut down Team Blue in 2024, a studio founded in 2022 that never released any games. Boss Fight Entertainment, acquired in 2022, was also closed in 2025, despite having released several titles within that timeframe. Netflix had described the Boss Fight closure as part of a "less-is-more strategy on a few identified verticals."
Despite these closures, Netflix has indicated continued interest in the gaming space. Co-CEO Greg Peters highlighted Unhinged as one of the platform's "most successful cloud game debuts" during a July 2026 investor call, noting its "really solid numbers that put it in the top tier of game performance for us." Peters added that Netflix intends to continue refining its investment in games based on performance and what resonates with members. "We're scratching the surface in terms of what we think the total potential of the space offers for us. You're going to see us continue to calibrate and refine our level of investment here, which is still very small relative to our overall content spend based on demonstrated performance based on what is working for our members and what's delivering returns to our business."