Netflix has closed Night School Studio, the developer behind the acclaimed horror game "Unhinged," marking another significant restructuring for the company's gaming division. This decision comes shortly after Netflix co-CEO Greg Peters highlighted "Unhinged" as one of the streamer's "two most successful cloud game debuts." The studio's closure, reported by Game File, was accompanied by the shutdown of Moonloot, another gaming developer.
Netflix stated that these organizational changes are intended to narrow the company's focus within the gaming space. The streamer is now prioritizing games for children, party games, story-driven titles, and games with "mainstream hooks." "We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities," a Netflix representative told Game File. "Games continue to be an opportunity for us to expand the variety of entertainment we offer Netflix members."
This move follows a pattern of contraction for Netflix's gaming endeavors. Earlier in the month, Netflix laid off 85% of the staff at Refactor Games, the studio responsible for a FIFA World Cup title that Peters identified alongside "Unhinged" as the other most successful cloud game debut. These cuts occur despite Netflix reporting a 600% increase in gaming engagement over the previous year in July.
Netflix has previously expressed interest in expanding its presence in the gaming industry, reportedly considering acquisitions of major players. However, the company did not pursue Warner Bros.' gaming assets before they were acquired by Paramount, and also considered purchasing EA, which was later taken private by a consortium including Saudi Arabia's Public Investment Fund.