Netflix is closing two of its game studios, including Night School Studio, the developer behind the Oxenfree series. Multiple outlets report that Netflix also shuts down Moonloot, another studio it owns. The closures follow the release of Night School’s Netflix interactive game, Unhinged, earlier this summer.
Netflix bought Night School Studio in 2021 and, according to coverage, recently highlighted performance from Unhinged. PC Gamer, Engadget, and GameSpot say Netflix executives praised the game’s results during an investor call, describing Unhinged as one of the company’s most successful “cloud game debuts.” Despite that, The Verge, Polygon, and other outlets describe the shutdown as part of a broader pullback and organizational changes in Netflix’s games operation.
Reports also frame the decision in strategic terms. Several outlets say Netflix narrows its focus toward specific genres and mainstream-appeal titles, including games for kids, party games, and story-driven experiences. Netflix states it is making changes to align execution with its priorities, while continuing to view games as a way to expand its entertainment offerings.
