Netflix is shifting its gaming strategy to prioritize broader appeal, and the move is forcing several studios to close.
From niche to mainstream
The streaming giant entered the gaming market late in 2021 with a small library of mobile titles. What began as a way to play a few games on the go has expanded to a catalog of over 120 games. Now, the company supports gaming on web browsers, laptops, PCs, and compatible TVs. This growth has led to the creation of internal game studios, though recent events suggest Netflix is narrowing its focus.
Netflix has already shut down studios such as Team Blue and Boss Fight Entertainment. The company is once again cutting back on its in-house operations. The streaming service intends to concentrate on “kids gaming, party games, story-driven fare and games with mainstream hooks.”
This change in priorities is affecting specific developers. Night School Studio, the creators of the cult hit Oxenfree and the recent Unhinged, is closing its doors. Moonloot, on the other hand, appears to be shutting down. In a statement to Game File, a Netflix spokesperson explained that the closures are about organizational focus. “We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” the spokesperson said.
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The company is also reducing its workforce within the internal games team. Details regarding the eliminated roles remain scarce. Tara Voelker, a former accessibility specialist for Netflix Games, confirmed they were affected by the layoffs. “Yes, I was impacted by the Netflix layoffs even though I was the single accessibility person in gaming,” Voelker wrote.
The closure of these studios does not mean Netflix is exiting the gaming market entirely. The company still maintains a first-party studio, Next Games, and works alongside external developers. It is likely the company will continue releasing new titles, but with a stricter adherence to the new focus on games with wider mainstream appeal.
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