Netflix Shutters Two Gaming Studios in Pivot Toward Television Games

Industry Pulse News Desk · 2026-08-13

Streaming giant Netflix is closing two internal game development studios as the company shifts its strategy toward television-streamed titles.

Netflix is shutting down two of its internal video game development studios as part of a broader operational shift toward party games and titles streamed directly to televisions. The move marks a strategic realignment for the streaming giant's interactive media division.

One of the affected facilities is Night School Studio, the developer behind the Oxenfree franchise. Netflix acquired the studio in 2021 to bolster its original gaming lineup. Night School recently launched Unhinged, an interactive horror experience designed for television screens, alongside a mobile title tied to the series Black Mirror.

The second studio set to close is Moonloot Games, an internal development team established by Netflix in Helsinki, Finland, in 2022. Moonloot was originally created to build original intellectual properties for the platform as part of the company's initial push into building in-house studio infrastructure.

The closures represent a departure from Netflix's previous focus on mobile-centric, narrative-driven games. Late last year, the company began redirecting resources toward games that can be played directly on smart televisions and cloud-connected devices, prioritizing party games and broader audience appeal.

Netflix launched its video game offering in late 2021 as an included feature for its existing streaming subscribers. The company has not officially disclosed the exact number of personnel impacted by the studio closures.