Netflix Shuts down Gaming Studio Even before it Starts

Netflix has shut down its AAA gaming studio, Team Blue. According to Game File, it affects several high-profile industry veterans who joined the studio over the past two years and Netflix also confirmed.

This Studio was developing an unrevealed multiplatform AAA game based on original IP, had joined together a notable talent including former Overwatch executive producer Chacko Sonny, Halo franchise veteran Joseph Staten, and God of War art director Rafael Grassetti. All of a sudden three executives have left the company.

Team Blue was established in late 2022 when Netflix hired Sonny to lead the studio. The company was expanding day by day in spring 2023 with Staten joining as creative director and Grassetti as art director, directing Netflix’s intentions to move ahead into its mobile-focused gaming strategy. 

The closure represents a potential scaling back of Netflix’s ambitious gaming plans. While the streaming platform is ready to offer over 100 mobile games through its subscription service, including such popular games like Grand Theft Auto and Hades, the shutdown of its AAA studio suggests a potential retreat from huge-scale game development.

Netflix’s gaming division has primarily focused on mobile titles and purchase of existing studios, such as Night School Studio, which developed Oxenfree II. The company has also collaborated with other developers to create games based on its popular shows and films, including upcoming titles like Chicken Run : Eggstraction and Squid Game: Unleashed.