Netflix Consolidates Gaming Division: Night School Studio and Moonloot Games Shuttered
In a significant strategic pivot, Netflix has officially ceased operations at two of its internal development houses: the acclaimed Night School Studio and the Helsinki-based Moonloot Games. This move leaves Next Games as the sole remaining internal studio under the Netflix umbrella, marking a major contraction in the streaming giant’s ambitious push into the interactive entertainment sector.
A Shift in Strategy and Personnel
Beyond the closure of these specific studios, Netflix has confirmed a broader reduction in its gaming workforce. While the company has opted not to release specific figures regarding the number of layoffs, the decision reflects a cooling period for a division that once aimed to challenge industry titans. This restructuring follows a period of high-level executive turnover; notably, Mike Verdu-who spearheaded the company’s initial gaming entry in 2021-transitioned to a role focused on generative AI before departing the organization entirely in March 2025. Leadership of the gaming division now rests with Alain Tascan, who assumed the role of president of games during a 2024 organizational overhaul.
The Legacy of Night School Studio
The shuttering of Night School Studio is particularly notable given its history with the platform. Acquired by Netflix in 2021, the studio was a cornerstone of the company’s early gaming strategy. The team gained widespread recognition for their supernatural thriller Oxenfree (2016) and its 2023 follow-up, Oxenfree 2: Lost Signals. Despite a previous round of layoffs in early 2024, the studio had continued to produce content, most recently launching the title Unhinged just six weeks prior to the closure announcement.
Performance and Market Context
The timing of these closures is paradoxical, as Netflix had recently highlighted Unhinged as a standout performer within its cloud gaming library. Alongside FIFA World Cup: Launch Edition-developed by Refactor Games, a studio with ties to Delphi Interactive-Unhinged was touted as one of the platform’s most successful cloud-based debuts.
This consolidation mirrors a wider trend in the tech industry, where companies are increasingly scrutinizing the ROI of internal gaming divisions. As the gaming market faces saturation and rising development costs, Netflix appears to be pivoting toward a leaner model, prioritizing efficiency over the rapid expansion that characterized its initial entry into the space. By narrowing its focus to Next Games, the company is signaling a more cautious, streamlined approach to its future in interactive media.
