Netflix has announced the closure of two of its video game studios, Night School Studio and Moonloot, marking another significant shift in its ongoing efforts to establish a presence in the gaming industry. Night School Studio, acquired in 2021 as part of Netflix's initial gaming push, is known for the critically acclaimed title Oxenfree. The studio recently released a new game, Unhinged, on June 30. Moonloot, acquired at the same time, had not yet launched a game under Netflix's ownership.
This move comes despite recent efforts by Netflix to deepen its involvement in gaming. The company has been integrating games more directly into the Netflix app, experimenting with a mobile controller, and securing partnerships, such as one with FIFA leading up to the World Cup. An upcoming exclusive presentation for Grand Theft Auto 6 on Netflix also signals a continued push for gamer attention.
Netflix's gaming journey began in 2021 with a modest lineup of five casual games, including titles tied to its popular series Stranger Things. The acquisition of Night School Studio signaled an ambition for more prestigious content, a direction that became more apparent in 2022 with the release of mobile games like Poinpy and Desta: The Memories Between. This period also saw Netflix bolstering its library with ports of critically acclaimed indie games such as Into the Breach and Immortality.
The subsequent years saw Netflix doubling down on its strategy of hosting award-winning games. Night School Studio released Oxenfree 2: Lost Signals, Snowman launched Laya's Horizon, and Yacht Club Games brought Shovel Knight: Pocket Dungeon to the platform. The addition of titles like Hades and The Curse of the Golden Idol, culminating in the release of Grand Theft Auto: The Trilogy – The Definitive Edition in late 2023, represented significant milestones.
Despite curating a library of notable games, discovery remained a challenge, with Netflix Games often feeling disconnected from the main streaming service due to limited marketing within the app. This led to a loss of focus in 2025, with Netflix removing 20 games, including Hades and the Monument Valley trilogy, and selling developer Spry Fox. The closure of Boss Fight Entertainment, the developer behind Squid Game: Unleashed, also occurred that year.
In 2025, Netflix began integrating games directly into its app, enabling play on televisions, with an emphasis shifting towards multiplayer party games like Pictionary: Game Night and Boggle Party, alongside an original Knives Out game. This strategy was further explored in June 2026 with a three-pronged approach: FIFA World Cup: Launch Edition, a casual sports title; Unhinged, a horror game from Night School Studio; and Netflix Minigolf, featuring courses based on Netflix shows. All three titles showcased the Netflix Game Controller, promoting a vision of the service as a dual-screen platform.
According to a Netflix spokesperson, the recent studio closures are part of a strategic tightening aimed at becoming more focused. The company stated its future priorities will center on “kids gaming, party games, story-driven fare and games with mainstream hooks.” This direction echoes Netflix's initial gaming offerings from 2021 and aligns with pivots seen at other tech giants like Amazon and Apple, which are increasingly focusing on casual and IP-driven content.
The company's exclusive Grand Theft Auto 6 presentation is expected to draw significant attention, but the unpredictable nature of Netflix's strategic shifts suggests that further changes in its gaming division may be on the horizon. The closures and layoffs represent a complex and often disjointed five-year attempt to define its role in the competitive gaming landscape.