Netflix is restructuring its video game division by closing Los Angeles-based Night School Studio and planning the closure of Helsinki-based Moonloot, according to reports from Game File, The Verge, and Polygon. The streaming giant is scaling back internal game development just six weeks after Night School released its 30-minute first-person horror game, Unhinged, which was streamed on TVs and praised by Netflix co-CEO Greg Peters for delivering solid numbers.
Netflix Closes Night School Studio and Moonloot
The decision to shutter Night School and Moonloot marks another pivot in Netflix’s gaming strategy. According to Game File, Netflix acquired Night School in 2021, and the developer subsequently released Oxenfree 2: Lost Signals and the Black Mirror-inspired mobile title Thronglets, following its acclaimed supernatural thriller Oxenfree. Moonloot was founded in Helsinki in 2022 and had not yet released a game, though Polygon reported it was working on an Animal Crossing-style life simulator.
These closures follow a series of similar cuts across the company’s gaming wing. Polygon noted that Netflix shut down its high-profile Team Blue studio in 2024, closed Boss Fight Entertainment last year, and sold cozy game developer Spry Fox back to its founders in December. Additionally, Refactor Games—which worked on Netflix’s recently released FIFA game—recently laid off 85% of its staff after publisher Delphi Interactive pulled funding, according to Polygon.
Strategic Shift Toward Party and Kids Games
Netflix attributes the studio closures to a narrowed focus on specific genres. A Netflix spokesperson told Game File that the company is prioritizing kids games, party games, story-driven fare, and titles with mainstream hooks. Recent releases reflecting this pivot include Toca Boca Jr Kitchen and Netflix Minigolf, a couch co-op party game featuring courses based on Stranger Things, Squid Game, and Bridgerton, as reported by Polygon.
“We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” a Netflix spokesperson told Game File and The Verge.
Alongside the studio shutdowns, Netflix is cutting jobs from its internal games team, though a company representative declined to specify the exact number of positions lost to Game File. The Verge reported that the layoffs include Tara Voelker, who stated she was the sole accessibility specialist on the gaming team.
Transition from Mobile to TV-Based Play
Netflix launched its gaming initiative in 2021 as a mobile-focused perk for subscribers. However, the company has increasingly shifted toward offering games through TVs and PCs via streamed connections, using mobile phones as controllers. This setup powered Night School’s final release, Unhinged, as well as titles like Boggle and Party Crashers, which helped push the Netflix game controller app up mobile app store charts, according to Game File.
Following the latest cuts, Netflix’s internal development footprint is largely reduced. The company relies on its remaining dedicated first-party studio, Helsinki-based Next Games—creator of couch-centric party games—alongside partnerships with external developers. This mirrors Netflix’s approach to film and television, where most content is produced externally rather than through owned studios.
Did you know?
Night School Studio’s release under Netflix, Unhinged, featured performances by actors Zoë Kravitz, Sadie Sink, and Troy Baker before the studio was shut down just six weeks after the game’s launch.
Frequently Asked Questions
Which game studios is Netflix closing?
Netflix is closing Los Angeles-based Night School Studio—developer of the Oxenfree series—and plans to close Helsinki-based Moonloot, according to reports from Game File and The Verge.
Why is Netflix shutting down its game studios?
According to a company spokesperson quoted by Game File and The Verge, Netflix is restructuring to prioritize kids games, party games, story-driven titles, and mainstream-appeal projects.
What was Night School’s final game for Netflix?
Night School released Unhinged, a 30-minute first-person horror game streamable on TVs using a phone as a controller, six weeks before its closure.
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