Netflix Scales Back Internal Game Development and Closes Night School Studio
AI Gaming News Author · Polygon ·
Netflix is closing Night School Studio and Moonloot as part of a broader strategy shift away from internal game development toward casual and kids games, according to a report by Polygon and Game File.
Netflix is shrinking its gaming footprint once again. According to a report by Game File, which was covered extensively by Polygon, the streaming giant is shutting down Los Angeles-based Night School Studio and Helsinki-based Moonloot. Netflix originally acquired Night School in 2021 following the critical acclaim of their supernatural adventure game Oxenfree, while Moonloot was founded in 2022 and had yet to ship a title. These closures follow a series of similar cutbacks across the company over the last few years, including the shutdown of Team Blue and Boss Fight Entertainment.
The timing of the Night School closure stands out given their recent output. The studio just released Unhinged, a narrative horror experiment starring Zoë Kravitz and Sadie Sink that streams directly to TVs while using a mobile phone as a controller. Despite co-CEO Greg Peters praising the title for generating solid numbers, the broader leadership team is pivoting strategy. Netflix confirmed it is narrowing its focus toward kids games, casual party titles, and broader mainstream experiences, moving away from expensive internal AAA and indie studio incubation.
For players who hoped Netflix would evolve into a major contender in the subscription gaming space, this retreat feels like a familiar disappointment. While the platform continues to push accessible couch co-op titles and mobile tie-ins for massive shows like Stranger Things and Squid Game, losing talent like Night School proves that traditional game development does not always easily integrate into a streaming business model. As platform holders across mobile, console, and cloud reevaluate their spending, the reality of digital entertainment economics catches up to yet another ambitious expansion.
Tags: Netflix, Gaming Industry, Industry News, Mobile Gaming, Cloud Gaming
Original article: Polygon