Netflix Narrows Gaming Ambitions as It Shuts Two Studios
Synopsis
Night School Studio, creator of the Oxenfree series, will close alongside Moonloot Games as Netflix narrows its gaming ambitions and priorities.
Netflix gaming strategy is becoming more constrained as it shuts down two game studios and eliminates more positions in its games division to focus on a narrow slate of mobile and independent games.
The two studios are Night School Studio (based in Los Angeles and behind the Oxenfree series) and Moonloot Games (based in Helsinki). Netflix bought Night School in 2021, and Moonloot was established in 2022.
Night School Closes Six Weeks After Unhinged
The announcement comes six weeks after Night School released Unhinged, an interactive horror game for Netflix's cloud gaming service. The game, controlled by a phone, will be released on 30th of June 2026.
Netflix had also been out with its own Oxenfree II: Lost Signals sequel and the Black Mirror: Thronglets mobile game, after acquisition of the studio. On the other hand, Moonloot is ending prematurely before it releases its announced game.
Netflix indicated it was undergoing organisational changes for its Games business to be more focused and efficient. The firm hasn't said how many other jobs will be cut.
Netflix Narrows Its Games Portfolio
For the Netflix gaming strategy, the four categories are now more emphasized: kids, party, narrative and mainstream games. The move comes after previous dismissals such as the not-for-profit AAA project which was closed in 2024 and the termination of Boss Fight Entertainment.
Netflix runs business in Helsinki's Next Games, but it uses external developers in other projects. The Netflix gaming strategy therefore leaves Netflix with a smaller in-house development team than last year.
The restructuring is set to take place in a vast global games market. Newzoo has published its latest market data on global games revenue, revealing that global games revenue increased by 9.1% in 2025 to $201.6 billion.
The revenue of the Asia-Pacific was the highest at 47%, and the North America was 27%. By contrast, Middle East and Africa saw growth of 15% and Europe, 10.7%.
North America is the second-highest regional game market for U.S. businesses. In 2025, the Asia-Pacific region would contribute the highest percentage of global games revenue, and Australia is a part of this area.
Netflix, which has $12.56 billion in revenue for the second quarter of 2026, posted a 13.4% increase year over year, and net income of $3.4 billion.
Source: The Verge
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
