# Netflix Restructures Gaming Division: Night School Studio Faces Closure<\/p>\n
In a significant shift for its interactive entertainment strategy, Netflix has announced the closure of two internal game development teams: the Los Angeles-based Night School Studio and the Helsinki-based Moonloot. This decision marks a major pivot in how the streaming giant approaches its gaming ambitions.<\/p>\n
### A Strategic Pivot for Netflix Games
\nWhile Netflix remains committed to integrating gaming into its subscription model, the company is clearly refining its operational focus. A spokesperson for the streamer explained that these organizational changes are designed to streamline production efforts. <\/p>\n
“We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” the representative stated. “Games continue to be an opportunity for us to expand the variety of entertainment we offer Netflix members.”<\/p>\n
### The End of an Era for Night School Studio
\nThe closure of Night School Studio is particularly notable given its reputation in the indie gaming scene. The team gained widespread acclaim for its atmospheric, narrative-driven titles, most notably the psychological thriller *Oxenfree* and its sequel, *Oxenfree 2: Lost Signals*. <\/p>\n
The shutdown arrives shortly after the studio celebrated the launch of its latest project, *Unhinged*. Despite the “top-tier” reception of their recent work, the studio-which Netflix acquired in 2021 as its first internal game developer-will cease operations as part of this broader corporate consolidation.<\/p>\n
### Moonloot and the Future of Netflix\u2019s Gaming Portfolio
\nAlongside the Night School news, Netflix is also shuttering Moonloot. Based in Finland, this studio had been operating quietly, focusing on an unannounced life-simulation title that will now never reach the public. <\/p>\n
This move reflects a broader trend in the tech industry, where companies are increasingly scrutinizing their gaming investments. According to recent industry data, the gaming sector has seen over 10,000 layoffs in 2024 alone, as major publishers move away from experimental projects to prioritize established franchises and cost-efficiency. <\/p>\n
For Netflix, the goal appears to be a leaner, more targeted library. By cutting ties with these specific development hubs, the company is signaling a move toward a more curated selection of games that align strictly with its core streaming business model.<\/p>\n