Netflix is officially shutting down two of its video game studios. This news arrives just six weeks after one of these studios made a recent launch. A representative provided a statement regarding this move by the streaming giant.
According to Variety, Night School Studio and Moonloot Studio are being shut down at Netflix. The former is a Los Angeles-based studio that was acquired by the streamer in 2021.
Night School recently released Unhinged, a 30-minute first-person horror game. Moreover, the studio has previously developed the award-winning game called Oxygenfree. This game was developed into a sequel and a mobile game. The Oxygenfree mobile game was tied to an episode of Netflix’s Black Mirror.
Moonloot Studio is based in Helsinki. It was created and led by studio director Marko Lastikka. Although this studio did not release a game, it had been working on an Animal Crossing-style social life-simulation game. This project is still under development, but the studio has shut down.
What did Netflix say in their statement about the video game studios?
According to GameFile, which first reported the news, the shutdown has been attributed to a shift in priorities toward kids’ gaming, party games, story-driven fare, and games with mainstream appeal, such as FIFA.
In an official statement to the reporter, a Netflix representative said, “We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities.”
Moreover, they have also been cutting jobs from the internal game team. “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,” the representative said. No comments were given on how many jobs were lost.
Netflix Games’ venture into the gaming world began in 2021 with the release of mobile games to subscribers. However, this is not the first time they have shut down their gaming studios. Previously, Team Blue Studio was shut down, which was followed by the closure of Boss Fight. By the end of 2025, the streaming giant sold Spry Fox to its founders.
This has left Netflix with an internal central gaming team and an external team of developers. They also have the Next Games Studio based in Helsinki, as per the source.
Originally reported by Christie D’Silva on ComingSoon.
