Netflix is shutting down two of its game studios, including Night School Studio, the developer of the acclaimed supernatural adventure game, Oxenfree. Helsinki-based Moonloot Games is also being closed. Los Angeles-based Night School Studio faces closure just weeks after releasing Unhinged, an interactive horror game made for Netflix members.
The studio closures were reported by Game File on Friday, but the number of employees laid off remains unclear. Netflix is also reportedly reducing the size of its internal games team.
The streamer confirmed the shutdowns in a statement to the publication and said it was prioritising in the areas of kids gaming, party games, story-driven titles, and mainstream games, like the recently launched FIFA World Cup: Launch Edition, released in time for the 2026 FIFA World Cup.
“We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” a Netflix spokesperson told Game File.
“We are incredibly grateful to the talented colleagues we’re saying goodbye to today. We thank them for all their contributions to Netflix, and wish them the best,” they added.
Oxenfree was released in 2016 and went on to win several awards
Photo Credit: Night School Studio
Night School Studio Shuts Down
Night School Studio, founded in 2014, is being shut down just weeks after releasing Unhinged on Netflix. Billed as an immersive and interactive horror experience starring big names like Zoë Kravitz, Sadie Sink, and Troy Baker, Unhinged arrived on the streaming platform on June 30. The game can be played on the Netflix app on TV using a smartphone as a controller.
The developer is best known for making supernatural teen thrillers Oxenfree and its sequel Oxenfree 2: Lost Signals. Oxenfree, released in 2016, followed a group of young friends who stumble on a supernatural rift. The independent game was acclaimed for its coming-of-age themes, its visual style, and its storytelling.
Netflix acquired Night School Studio in 2021 in a bid to expand its video game footprint. The team became the first games studio to join the streamer. “We truly believe we’ve got a chance to positively impact the way people discover, play, and share story games with each other,” Night School co-founder Sean Krankel said at the time of the acquisition.
After some years of growing its games offering, Netflix has cut back on its games division spending by shutting down several of its studios. Last year, the company sold Seattle-based Spry Fox back to its original founders even as the studio was working on its next game, Spirit Crossing.
