Netflix, ever the bastion of good judgment and taste, is shutting down two more studios as it reconfigures its games branch to focus on different projects. Oxenfree developer Night School Studio and Moonloot are both closing.
In a statement to Game File, a Netflix spokesperson said that the decision to close the studios reflects an internal shift toward focusing specifically on “kids gaming, party games, story-driven fare and games with mainstream hooks,” such as the widely panned FIFA World Cup that Netflix touted as one of its most successful launches before also closing the studio behind it.
“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 statement to Game File said.
Night School and Moonloot are closing down entirely, but Netflix is also cutting jobs in its internal development teams, though it declined to give a number when asked by Game File.
“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,” the rep said.
The Night School closure is a hard pill to swallow, with the studio having created some really great narrative games over the course of its 12-year run. Oxenfree, a supernatural teen adventure game, captured a lot of hearts back in 2016, and it got a sequel in 2023. However, my favorite game from the studio is 2019’s Afterparty, which had a pair of characters journeying through hell in order to outdrink Satan in an effort to return to the real world after death. The team also just released a mobile game called Unhinged in June, featuring the voice of Spider-Man and Stranger Things star Sadie Sink.
Moonloot was founded in 2022 and was working on an Animal Crossing-style life sim, but didn’t release a game before its closure. For a few years, Netflix was heavily investing in internal video game development studios, but has largely shifted to external partnerships, and leaned hard into more casual experiences.