Netflix shuts down 2 game studios just 6 weeks after release

The streaming giant Netflix is making some significant organizational shifts in its gaming division, officially announcing the closure of two of its video game studios: Night School Studio and Moonloot Studio.

This move comes just six weeks after Night School Studio released Unhinged, a 30-minute first-person horror experience. The decision signals a clear strategic pivot for Netflix, moving away from development toward areas that emphasize mainstream appeal and specific types of storytelling.

Night School Studio had previously developed the award-winning game Oxygenfree, which branched out into sequels and mobile versions, even tying into popular content like an episode of Black Mirror. The studio’s recent shutdown reflects a redirection of focus within the streaming giant.

Meanwhile, Moonloot Studio, based in Helsinki and led by director Marko Lastikka, is also being shut down. Although the team had been working on an ambitious Animal Crossing-style social life-simulation game, the project remains under development for now.

The rationale behind these closures stems from a desire to focus execution on content that aligns with Netflix’s evolving priorities. A representative for Netflix explained this organizational change, stating they are making these adjustments to match new business goals: “We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities.”

The restructuring also involved cuts within the internal game team. The representative expressed gratitude to the talented colleagues departing, wishing them the best as they move forward.

This is not Netflix’s first major change in its gaming ventures. The streaming service launched its foray into gaming in 2021 by rolling out mobile games to subscribers. Prior to these studio closures, Netflix had previously shut down teams like Team Blue Studio and Boss Fight, and eventually sold Spry Fox to its founders.

Despite the restructuring of the studios, Netflix maintains an internal central gaming team alongside external development partners. The company continues to operate key creative hubs, including the Next Games Studio based in Helsinki, ensuring that content creation remains a core focus for the platform.