Netflix is closing two game studios

Netflix is reportedly moving to shut down two of its internal gaming studios as part of a broader strategic pivot in its interactive entertainment division. According to reports from Game File and Variety, the streaming giant is narrowing its focus toward party-style games and titles designed for television streaming, moving away from some of its previous development efforts.

Among the studios affected is Night School Studio, the developer behind the critically acclaimed Oxenfree series, which Netflix acquired in 2021. The decision marks a significant shift for the company, which has spent the last few years aggressively building out its gaming portfolio to offer subscribers more value beyond traditional film and television content.

Industry analysts suggest this move reflects a recalibration of Netflix’s gaming ambitions. By streamlining its development pipeline and focusing on formats that integrate more seamlessly with the core Netflix television experience, the company appears to be prioritizing engagement metrics over the production of standalone, narrative-heavy titles. Netflix has not yet issued a formal statement regarding the specific impact on staff or the future of existing projects under development at the affected studios.