Netflix has closed Night School, the Los Angeles studio behind Oxenfree and Oxenfree 2, shortly after the successful release of its narrative horror game Unhinged. The decision highlights Netflix’s continued restructuring of its games business, despite the company saying it remains committed to releasing games and describing Unhinged as a strong performer.

Night School released Unhinged on 30 June, collaborating with director Zach Cregger and featuring actors Sadie Sink and Zoë Kravitz; a former employee said it reached millions of satisfied players before the closure. Netflix is also closing Helsinki-based Moonloot, which had not released a game, following earlier closures of Team Blue in 2024 and Boss Fight Entertainment in 2025, while executives say gaming investment will be refined around proven returns.