Netflix Closes Two Game Studios in Strategic Pivot to TV-Based Party Titles
The streaming giant shuts down Night School Studio and Moonloot Games, cutting staff as it shifts focus from mobile indie titles to four core content pillars.
Netflix is closing two of its game development studios, Night School Studio and Moonloot Games, as part of a broader restructuring of its gaming division. The move signals a decisive shift away from the platform’s earlier strategy of acquiring and publishing mobile-focused indie titles, replacing it with a concentrated focus on TV-based party games and broader mainstream appeal.
According to a statement from Netflix spokesperson Chrissy Kelleher, the closures are necessary to align the organisation’s structure with new strategic priorities. “As we continue to prioritize these areas, we see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” Kelleher said. The company is also eliminating several additional roles within the games business, including the position of accessibility lead.
Night School Studio, best known for the narrative-driven Oxenfree series, was acquired by Netflix in 2021. The studio’s final output included the TV horror experience Unhinged and a mobile game tied to the Black Mirror franchise, released in 2025. Helsinki-based Moonloot Games, established in 2022, is also being shut down as the company consolidates its development efforts.
The restructuring marks a significant departure from Netflix’s initial gaming approach, which relied on prestige indie titles to drive engagement. The current strategy centres on four core pillars: kids, party, narrative, and mainstream content. This pivot has already seen the removal of several indie hits from the mobile lineup in favour of titles designed for television screens and broader audiences.
Staff cuts extend beyond the studio closures. Kelleher confirmed that Tara Voelker, identified as the single accessibility person on the gaming team, was among those let go. The company has faced scrutiny over its gaming strategy in recent years, having previously shut down the studio behind a Squid Game mobile title, sold the Cozy Grove developer Spry Fox back to its original owners, and closed a AAA studio in 2024 that had not released any games.
