Netflix Shuts Down AAA Game Studio, Signals Shift in Gaming Strategy

Netflix ’s aspirations in the gaming world have unexpectedly changed this month as the company announced the closure of its Southern California game development studio, known internally as Team Blue . This studio was dedicated to creating high-profile AAA games, marking a significant departure from Netflix's original gaming strategy , which involved recruiting high-profile talent from celebrated franchises like Halo, Overwatch, and God of War. Notably, all senior executives brought on board have now left the company.

Team Blue had been working on a multi-platform AAA title based on an original intellectual property , but Netflix decided to shut down the studio before this game could see the light of day. The news, first reported by Game File, was later confirmed by Netflix itself.

Since its entry into the gaming sector in 2021, Netflix has progressively broadened its gaming catalog. Starting with a focus on hyper-casual mobile titles, the platform has expanded to include exclusive adaptations of renowned games such as Grand Theft Auto and Hades.

Moreover, Netflix has developed original games, including Cosy Grove: Camp Spirit and Oxenfree II: Lost Signals, demonstrating its increasing footprint in the gaming landscape.

The closure of its AAA studio indicates a potential downsizing of Netflix's ambitions regarding large-scale game projects. Nevertheless, the company maintains a robust library of over 100 video games available to subscribers. This move appears to reflect a strategic pivot, with Netflix possibly opting to concentrate on smaller, mobile-focused games rather than the more extensive AAA experiences.

As reported by Variety, Netflix has emphasized its achievements in developing games based on its own intellectual properties, with a commitment to launching one new game each month under the Netflix Stories brand. The latest addition to this lineup is inspired by the popular teen drama Outer Banks, with other titles drawing from series like Emily in Paris, Virgin River, and Love is Blind.

Additionally, Netflix is gearing up to introduce independent mobile games set within the worlds of Squid Game and Zack Snyder’s upcoming franchise, Rebel Moon, further enhancing its gaming offerings.