Netflix Axes Studios Despite CEO Praise for Games

Netflix has announced the closure of Night School Studio, the first game development team it acquired in 2021. This decision follows the release of Night School's latest game, "Unhinged," approximately six weeks ago. The company also plans to shut down Helsinki-based Moonloot Games, founded in September 2022. These closures are part of a broader strategy shift within Netflix's gaming division.

A Netflix spokesperson indicated that the company is now prioritizing children's games, party games, narrative experiences, and mainstream titles. This new focus includes games like "FIFA World Cup: Launch Edition," developed by a third-party studio. Notably, co-CEO Gregory Peters recently lauded "Unhinged" and "FIFA World Cup" as the two most successful cloud game debuts for Netflix during the Q2 2026 earnings call on July 16.

Night School co-founders Sean Krankel and Adam Hines had expressed optimism about the Netflix acquisition in 2023, highlighting the creative freedom and resources provided. However, with the recent leadership change in 2024 under Alain Tascan, Netflix has drastically reduced its internal studio presence. Spry Fox was an exception, having been bought back by its founders, while Next Games and Netflix Games Studio remain.