Netflix is closing down two more game studios, including Oxenfree developer Night School Studio.
As reported by Game File, the streaming service is shutting down the California studio, after acquiring it in 2021, making it the first studio to be acquired by Netflix.
Night School released the critically acclaimed Oxenfree in 2016, and released sequel Oxenfree 2: Lost Signals after it was acquired by Netflix, as well as Black Mirror spin-off mobile game Thronglets.
Just six weeks ago it released Unhinged, an interactive horror game designed to be played through Netflix’s cloud streaming service, where the player uses their phone to act as the controller and the protagonist’s actual phone in the game.
Now the studio is being shuttered, along with plans to shut down Finnish studio Moonloot, which was founded in 2022 and was reportedly working on an Animal Crossing-style life sim game.
A Netflix spokesperson told Game File that its was focusing its attention more on party games, story-driven games, games aimed at children and titles with more mainstream appeal, including the recent FIFA World Cup game.
“We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” they told the publication.
They added: “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.”
It was also confirmed that Netflix will be laying off staff from its internal games team, but the exact number of jobs lost as a result of this wasn’t made clear.
Last year Avowed director Carrie Patel announced that she was leaving Obsidian after 12 years at the studio, and was joining Netflix to take on a directorial role at Night School Studio.
Netflix’s gaming vision continues to change over time, resulting in numerous closures and layoffs. In October 2024 it shut down its triple-A studio, known as Team Blue, after spending the past couple of years acquiring a number of veteran developers to join it.
These included former Overwatch executive producer Chacko Sonny, Halo veteran Joseph Staten and former Sony Santa Monica art director Raf Grassetti. All three reportedly left Netflix after the studio was closed down.
The following month it then removed almost all of its interactive specials, which played out like branching stories with players making decisions to progress the story in various directions. 20 of its 24 interactive specials were removed by December 1, and the rest – including an episode of Black Mirror – followed in 2025.
Netflix had previously laid off numerous staff at Night School Studio, according to a February 2025 report which claimed the news came as a surprise to staff at the time.
