Netflix closes Oxenfree developer Night School Studio

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Netflix closes Oxenfree developer Night School Studio

Developing story first seen 3 hours ago

Nintendo Life · 3 hours ago

Netflix has closed Night School Studio, the developer behind Oxenfree, alongside the smaller Moonloot studio, according to newly reported coverage. The move is part of an apparent restructuring of Netflix’s games business and matters because it ends the work of a recognised narrative-game developer despite Netflix recently promoting its latest release as a strong cloud-gaming debut.

Netflix said it is refocusing on children’s games, party games, story-driven titles and projects with broader mainstream appeal, while also cutting jobs in its internal games team; the number affected is unknown. Moonloot, founded in 2022, had not released a game but was reportedly developing an Animal Crossing-inspired project, while Night School most recently released the streaming game Unhinged.

  • Netflix has closed Oxenfree developer Night School Studio.
  • Moonloot has also been shut down.
  • Netflix is refocusing its games strategy.

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Night School Studio was an independent American games developer best known for Oxenfree, a supernatural story game in which players’ choices affect conversations and events. Netflix bought the studio in 2021 as part of its effort to add games to its subscription service, and it later released the sequel Oxenfree II: Lost Signals.

Netflix has expanded into games in recent years, offering titles through its mobile app and testing games that can be played through televisions and web browsers. Its games business has included buying studios, licensing established games and making new titles based on popular shows and films.

The closures suggest Netflix is concentrating its games spending on types of games it believes can reach larger audiences, such as children’s and party titles. They also affect Moonloot, a newer studio working on an unreleased game, while the wider restructuring includes cuts within Netflix’s own games team.

Both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

Supporters of Netflix’s decision could argue that a games division must concentrate its limited resources on formats most likely to reach the service’s very large, diverse subscriber base. Prioritising accessible children’s, party and broadly appealing story-led games may offer a clearer route to sustainable investment than maintaining several small studios with uncertain commercial prospects, particularly before an unreleased project has proved its market. On this view, difficult closures can be a responsible attempt to give the remaining games strategy focus and financial discipline.

The case against

Critics could argue that closing Night School discards proven creative talent and undermines Netflix’s stated ambition to offer distinctive narrative games. Oxenfree’s reputation and the apparent success of its cloud-gaming launch suggest the studio was capable of making precisely the sort of story-led work Netflix says it values, while cancelling Moonloot’s project removes experimentation before audiences can judge it. They may contend that repeated shifts in strategy make it harder to retain developers and build confidence that Netflix will support original games over the long term.

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Originally published by Nintendo Life as “Netflix Shuts Down Oxenfree Developer Night School Studio”.