Night School Staff Speak Out After Netflix Shuts Down Developer Following ‘Top Tier’ Launch of Unhinged
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.
In short
- Netflix has closed Oxenfree developer Night School.
- Unhinged performed strongly shortly before the closure.
- Netflix says it will continue releasing games.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Netflix's approach prioritises profitability and sustainability in a competitive market. Closing unprofitable studios and concentrating investment on proven returns represents rational capital allocation; the company's executives argue this strengthens gaming's future by ensuring only sustainable projects continue. Rather than abandoning gaming, this reflects realistic assessment of where Netflix's investment can generate long-term value.
The case against
Closing Night School immediately after Unhinged's reported success exemplifies self-defeating short-termism. Building credible presence in games requires patience, sustained investment, and team stability; shuttering a studio with proven pedigree right after a win damages morale, talent retention, and Netflix's reputation as a serious creative partner. The pattern of repeated closures suggests Netflix's gaming commitment is conditional and reactive rather than strategic.
Explained simply
Netflix is a subscription service best known for films and television, but it has also invested in video games. Night School was a Los Angeles game studio known for Oxenfree and its sequel, story-led games in which players make choices as events unfold.
Netflix bought Night School in 2021 as part of its push into games. The studio later made Unhinged, a horror game developed with film director Zach Cregger and featuring actors Sadie Sink and Zoë Kravitz. Its closure comes amid wider changes to Netflix’s games business, which has also included other studio closures.
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