Netflix announced the closure of two game development studios on Thursday. Night School Studio, which created the horror title “Unhinged” with backing from director David Fincher and filmmaker Zach Cregger, is being shut down less than two months following the game’s release. The company is also closing Moonloot, a Helsinki-based studio established in 2022.
A Netflix spokesperson said the streaming service was “incredibly grateful” to the employees at both studios and thanked them for their contributions. The shutdowns represent the latest reduction in Netflix’s gaming division, which has seen significant restructuring in recent years. The company previously divested Spry Fox, which was returned to its founders earlier in the year, and shut down Boss Fight following its release of a “Squid Game” mobile title. Team Blue, Netflix’s AAA-focused studio, was also closed in 2024.
Netflix’s gaming operations now center on Next Games, based in Helsinki, along with an internal gaming team that collaborates with external developers. Under the leadership of Alain Tascan, who assumed the role of president of games at the end of 2024, the division has shifted its strategic focus to four main areas: children’s games under the “Netflix Playground” brand, party games including “Netflix Minigolf,” narrative-driven experiences like “Unhinged,” and mainstream titles such as “FIFA World Cup: Launch Edition.”
Recent expansion efforts have emphasized games designed for television play using a phone as a controller. According to sources, the division has generated particular internal enthusiasm around cloud gaming and children’s gaming initiatives. GameFile initially reported the studio closures.
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