Netflix Shuts Down Two Gaming Studios Weeks After Launch

Netflix has closed two of its internal video game studios this week: Night School Studio, maker of the horror title “Unhinged,” and Moonloot, a Helsinki-based developer. The move comes barely six weeks after “Unhinged” debuted, a release notable for carrying the names of filmmakers David Fincher and Zach Cregger. A Netflix spokesperson said the company was grateful for the departing employees’ contributions and wished them well.

A Pattern of Studio Cuts

These closures aren’t isolated. Netflix has been steadily trimming its in-house gaming division over the past several years. Last December, it handed Spry Fox back to its founders. It shut down Boss Fight following the release of a mobile game tied to “Squid Game,” and closed its AAA-focused studio, Team Blue, back in 2024. No specific reason has been given for the latest round of cuts, but the pattern suggests an ongoing narrowing of Netflix’s internal development ambitions.

What’s Left of Netflix Gaming

With Night School and Moonloot gone, Netflix’s remaining internal studio is Next Games, alongside a team dedicated to working with external developers. Games president Alain Tascan has reportedly organized the company’s gaming strategy around four buckets: kids’ games, party games, narrative-driven titles like “Unhinged,” and broadly appealing games such as the recently released “FIFA World Cup: Launch Edition.” Industry sources indicate that cloud gaming and children’s titles are generating the most enthusiasm internally right now, suggesting Netflix may be pivoting away from prestige, narrative-heavy projects in favor of more accessible, higher-volume gaming experiences.

The closures raise questions about the future of story-driven games under the Netflix umbrella, even as the streamer continues investing in gaming more broadly.