Netflix Closes Its Largest Gaming Studio

In a surprising move, Netflix has shut down its largest gaming studio, signaling a potential shift in the company’s gaming strategy. The studio, known internally as “Team Blue,” was launched in 2022 and was Netflix’s ambitious effort to make a mark in the highly competitive “AAA” gaming sector. Despite the initial excitement surrounding its formation, the studio has now been dissolved, leaving many to speculate on the future of Netflix’s gaming aspirations.

Team Blue had attracted some big names in the gaming industry, including Chacko Sonny, a former executive producer for “Overwatch,” Joseph Staten, a key figure in the “Halo” franchise, and Rafael Grassetti, a renowned artist known for his work on “God of War.” Their combined experience generated excitement about Netflix’s potential in the AAA gaming space. However, according to a report from GameFile, the studio was closed as of October 2024, and all three of these high-profile hires have since left the company.

A representative from Netflix confirmed the closure to GameFile, saying, “As of October 2024, Netflix has shut down Team Blue, and all three of those big hires are no longer at the company.”

This development comes as a surprise, given that the Creative Director at Netflix Games had posted a job listing just last month, which stated, “We’ve got big narrative ambitions on team ‘Blue’ at Netflix Games and we need great people to help us achieve them.” The closure of Team Blue raises questions about what might have caused Netflix to backtrack on its plans.

Netflix first ventured into gaming in 2021, slowly adding games to its platform. In 2024, the company revealed that over 80 games were in development, with a commitment to releasing a new game every month. Despite these ongoing projects, the closure of Team Blue suggests that Netflix may be rethinking its approach to the AAA gaming market.

While Netflix has remained largely silent on the matter, Stephan Totilo, a journalist for GameFile, speculated on the microblogging site X (formerly Twitter) that this could be the result of a strategic shift under new leadership. He stated, “Definitely a sign of new leaders pulling back from one big bet, but Netflix still has a bunch more studios and execs seem hyped on growth targets and show tie-in games.”

https://x.com/stephentotilo/status/1848561063161163852

Netflix has confirmed to PC Game that the GameFile report is accurate but has offered no further comment on the reasons behind the studio’s closure.

This move raises questions about Netflix’s long-term gaming ambitions, especially as it continues to release games alongside its popular streaming content. For now, it seems that Netflix is shifting its focus away from large-scale AAA game development, but the company’s future in gaming remains an evolving story.