Netflix is shuttering its Los Angeles-based recreation studio Night School, finest identified for side-scrolling psychological thrillers Oxenfree and Oxenfree 2: Misplaced Alerts.
The streamer can also be shutting down Moonloot, its recreation studio based mostly in Helsinki, Finland, which has not but launched any titles however was growing an unannounced life-sim challenge.
Talking with GameFile, a Netflix spokesperson confirmed the corporate nonetheless intends to launch video games on its platform, saying this newest transfer was an effort to streamline these efforts.
“We see a chance to be extra centered in our execution, so we’re making organizational modifications to the enterprise to match these priorities,” the spokesperson mentioned. “We’re extremely grateful to the proficient colleagues we’re saying goodbye to at the moment. We thank them for all their contributions to Netflix, and want them the most effective. Video games proceed to be a chance for us to broaden the number of leisure we provide Netflix members.”
This information comes simply after Night School launched Unhinged, a first-person, narrative-driven horror recreation created in collaboration with Weapons director Zach Cregger, on June 30. Starring names like Sadie Sink and Zoë Kravitz, it stood out as a singular providing within the present gaming panorama, which reviewers described as a “enjoyable and scary choose-your-own-adventure” romp.
A former member of Night School employees spoke in regards to the closure on LinkedIn, writing, “Regardless of directing Unhinged and delivery it 6 weeks in the past to thousands and thousands of excited, glad gamers, it appears like I am again available on the market (together with the remainder of Night School Studio)! …I am so pleased with what we completed, and thousands and thousands of individuals agree that we made an amazing product! Onward to the following thrilling factor!”
These are the most recent recreation studio closures from Netflix after the streamer shut down Group Blue in 2024. Netflix based the developer in 2022, and it closed with out releasing any video games. It additionally closed Boss Combat Leisure in 2025 after buying it in 2022, releasing a number of video games inside that timeframe. On the time, Netflix described Boss Combat’s closure as a part of a “less-is-more strategy on just a few recognized verticals.”
Regardless of these most up-to-date closures, Netflix has had optimistic issues to say about its foray into the gaming house, with co-CEO Greg Peters saying Unhinged turned considered one of its “most profitable cloud recreation debuts” that yielded “actually stable numbers that put it within the high tier of recreation efficiency for us” in a July 2026 investor call.
“We’re scratching the floor by way of what we expect the full potential of the house presents for us. You are going to see us proceed to calibrate and refine our degree of funding right here, which continues to be very small relative to our total content material spend based mostly on demonstrated efficiency based mostly on what’s working for our members and what’s delivering returns to our enterprise,” he added.
Virginia (she/her) is IGN’s Information Editor. With ten years of expertise reporting on video games and leisure, she’s bought a storied background within the preventing recreation neighborhood, influencer information, and viral on-line tendencies. Discover her on Twitter at @TheeMissGlaze.