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Netflix Shuts Down 2 Video Game Studios Just 6 Weeks After Latest Release, Statement Given

Netflix is narrowing its games push toward kids, party and story-driven titles as it closes two studios and cuts internal development jobs.

  • Netflix is closing Los Angeles-based Night School Studio and Helsinki-based Moonloot Studio, continuing the streaming giant's broader effort to scale back internal video game development.
  • A Netflix spokesperson told Game File the decision reflects an internal shift toward "kids gaming, party games, story-driven fare and games with mainstream hooks." The company is making organizational changes to match these priorities.
  • Night School Studio, acquired in 2021, created the acclaimed Oxenfree series, while Moonloot Studio was developing an unreleased Animal Crossing-style life simulation game before its closure.
  • These closures arrive just six weeks after the release of Unhinged, though Netflix declined to specify the number of staff members affected by the latest layoffs.
  • Prior studio shutdowns include Team Blue Studio in 2024, Boss Fight Entertainment last year, and the sale of Spry Fox to its founders in 2025, establishing a pattern of gaming consolidation.
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VGChartz broke the news on Thursday, August 13, 2026.
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