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Netflix shuts Night School and Moonloot game studios
Developed over time first seen 3 months ago
Netflix is closing Night School Studio and Moonloot Games as it shifts its games strategy towards party titles and games streamed to televisions. The decision affects the developer behind the Oxenfree series and further reduces Netflix’s earlier focus on mobile games and prestige independent releases.
Netflix acquired Night School in 2021, while Helsinki-based Moonloot was founded in 2022. It will also remove an unspecified number of other games roles, including its sole accessibility specialist; the closures follow the shutdown of a Squid Game studio last year, the sale of Spry Fox back to its founders, and the 2024 closure of an unreleased AAA studio.
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In short
- Netflix closes Night School and Moonloot Games
- Strategy shifts towards television-based party games
- Further games roles will also be cut
How this story developed
- 3 months ago Newly reported details showed that Night School had recently released Unhinged and a Black Mirror tie-in game, while Netflix’s cuts also include its only accessibility specialist.
- 3 months ago Netflix said it would shut Night School Studio and Moonloot Games, cutting games jobs as it pivots towards television-streamed party games.
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The strongest fair case each way — we don't pick a winner.
The case for
Netflix's strategic shift towards party titles and TV-streamable games reflects a rational business pivot. Mobile gaming is an extremely competitive market with high failure rates, and narrative-focused indie titles like Oxenfree, whilst critically acclaimed, may not achieve the scale required to justify their development costs within Netflix's business model. Focusing resources on games that integrate seamlessly with Netflix's core offering—streaming to televisions and reaching existing subscribers—allows the company to optimise its gaming investment with greater precision.
The case against
The closure of Night School Studio and other creative studios represents a troubling loss for artistic diversity within gaming. Night School created innovative, narrative-driven experiences that advanced gaming as a storytelling medium, work that might not have been possible without major studio backing. Beyond the creative cost, these closures eliminate jobs and notably include Netflix's sole accessibility specialist, worsening gaming accessibility for disabled players. The pattern suggests Netflix views games merely as content metrics to optimise rather than as a genuine art form worthy of sustained investment.
Explained simply
Netflix began offering games to subscribers in 2021, initially focusing largely on mobile titles available through its app. It also bought or backed smaller studios to develop exclusive games, including Night School Studio, known for the story-led supernatural series Oxenfree.
The company has since reviewed how games fit into its wider entertainment business. It has experimented with games linked to its own programmes, while also looking at titles that can be played together and streamed directly to television screens.
The change matters because it shows Netflix is narrowing its approach after investing in several types of game development. Studio closures and job cuts can affect future projects, while also indicating which kinds of games Netflix expects to prioritise for its subscribers.
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Originally published by The Verge as “Netflix is closing two game studios”.