Netflix Shuts Down Two Game Studios, Shifting Focus to Kids and Party Games

Netflix has announced the closure of its Los Angeles-based Night School studio and Helsinki-based Moonloot studio, marking a significant shift in its gaming strategy. According to reports from PocketGamer.biz, Netflix is prioritizing kids' games, party games, narrative-driven titles, and games with mainstream appeal, including its recently released FIFA title. Night School, acquired by Netflix in 2021, had just released its latest game, "Unhinged," which received praise from Netflix co-CEO Greg Peters during an investor call. Despite this, the studio is set to close. Moonloot, founded in 2022, had not released any games yet. Netflix stated that it is making organizational changes to better align with its new priorities. This is noteworthy as Netflix has shut down several game studios in recent years, including Team Blue in 2024 and Boss Fight in 2025. The company's gaming strategy is shifting from a mobile-first approach to cloud gaming on TVs and PCs, with phones being used as controllers. This reflects Netflix's ongoing exploration and adjustment in the gaming sector.