Key Takeaways
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- Netflix has closed Night School Studio and Moonloot Studios as part of a major restructuring to reduce costs in its gaming division.
- Despite the shutdowns, Netflix plans to continue investing in specific game categories like childrens titles, party games, and broad-narrative experiences.
- The company is shifting toward an execution-focused strategy that prioritizes shorter gameplay sessions designed for traditional streaming audiences.
- Meanwhile, separate internal studio Next Games will operate independently with a focus on releasing minigolf and trivia titles tied to Netflix shows.
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Netflix has shut down Night School Studio, the developer behind Oxenfree, just six weeks after the release of its latest title, Unhinged. This decision, part of a broader restructuring of Netflix’s Games division, also includes the closure of Moonloot Studios in Helsinki, Finland. Netflix acquired Night School Studio in 2021, marking its first acquisition of a game development studio. Founded in 2014, Night School Studio gained recognition for its 2016 supernatural narrative adventure, Oxenfree. The studio later developed its sequel, Oxenfree II: Lost Signals, which was released in 2023. Under Netflix’s ownership, Night School also released Afterparty, a graphic adventure game known for its unique dialogue system and branching conversations. In 2021, the studio released Thronglets, a companion experience for Black Mirror that blended godsim and Tamagotchi elements.
Most recently, Night School Studio launched Unhinged on June 30th. This first-person horror experience, created for Netflix’s game service, runs for approximately 30 minutes and utilizes a player’s smartphone as a controller to interact with environmental elements. The title features voice performances from Zoe Kravitz, Sadie Sink, and Troy Baker. Unhinged was specifically designed as an experience capable of bridging traditional Netflix audiences with video games, lowering both the skill barrier and the time typically required for gameplay. The proposal combined the structure of audiovisual production with interactive elements and a duration comparable to that of an episode or short film. Shortly before the studio’s closure, Netflix co-CEO Greg Peters had praised Unhinged’s performance, stating that the game had delivered “solidly strong numbers” to investors. Moonloot Studios, also known as Moonloot, was founded by Netflix in September 2022 and was intended to develop a FIFA World Cup tie-in game. However, the studio never released any titles.
In addition to Night School and Moonloot, Netflix is also closing Team Blue, a startup studio led by veterans from Halo and Call of Duty, due to organizational cuts in 2024. Last October, Netflix shut down Boss Fight Entertainment and later sold Spry Fox back to its founders in December. Last year, Night School Studio also experienced internal layoffs within its games team. Despite these closures, Netflix affirms its commitment to video games, though it will focus on fewer categories. These organizational changes are intended to make the company more execution-focused, with a strategy that prioritizes children’s games, party titles, narrative experiences, and broadly appealing games. The number of employees affected by these layoffs has not yet been disclosed. The closure of Night School Studio and Moonloot signifies a shift in Netflix’s gaming strategy. Initially, the company showed significant ambition in the gaming market, acquiring studios and building internal teams. However, recent years have seen a reduction in these efforts.
Next Games Unleashes Squid Game Minigolf and Trivia Titles Independently in Helsinki
Netflix’s internal studio Next Games, based in Helsinki, operates independently from Night School and Moonloot. Next Games has released a minigolf title featuring characters from Netflix franchises like Squid Game and Stranger Things, as well as a daily trivia game for subscribers.
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