Netflix has abruptly closed Night School Studios, the developer behind the acclaimed narrative titles Oxenfree and Oxenfree 2: Lost Signals, along with its Moonloot studio in Helsinki. This decision comes just six weeks after the release of Night School's latest game, Unhinged, which Netflix had recently lauded as one of its most successful cloud game debuts.
A Netflix spokesperson confirmed the closures, first reported by Game File, stating that the company is "making organizational changes to the business" to "be more focused in our execution." The company emphasized its continued commitment to gaming, highlighting successes in its focus areas: Kids, Party, Narrative, and Mainstream, with a particular excitement for cloud and kids games.
Despite the recent praise for Unhinged during Netflix's second-quarter earnings report, where co-CEO Gregory Peters noted that both FIFA and Unhinged were top-tier performers among cloud game debuts, the studios are now being shuttered. Netflix acquired Night School in 2021, citing inspiration from the studio's mission to "set a new bar for storytelling in games" and its commitment to artistic excellence.
Night School is best known for the award-winning 2016 indie hit Oxenfree, its 2023 sequel Oxenfree 2: Lost Signals, and the intervening title Afterparty. These games played a significant role in Netflix's initial push into acquiring game development talent.
The closures of Night School and Moonloot, which Netflix founded in 2022, signal a potential shift in Netflix's gaming strategy. This follows a pattern of restructuring within its gaming division, including the earlier shutdown of its internal studio, Team Blue, before it could release any titles. Furthermore, Netflix has recently been seeking a Director of Generative AI for Games, suggesting an increased focus on artificial intelligence within its gaming endeavors. The company also indicated that "some additional Games roles" are being eliminated beyond the two studio closures, though specific details were not provided.