Netflix scales back its gaming efforts by closing two additional studios.

Netflix is shutting down two more of its video game studios as it continues to refine its approach to game development.

The Los Angeles-based Night School Studio, known for the acclaimed Oxenfree series, is being closed, along with Helsinki’s Moonloot, which was established in 2022. Night School Studio was acquired by Netflix in 2021. The news of these closures was first reported by an outlet.

These decisions are part of a broader trend of cutbacks as Netflix redefines its gaming strategy. The company previously closed its high-profile Team Blue studio in 2024, shut down Boss Fight Entertainment, the developer behind Squid Game: Unleashed, last year, and sold cozy game developer Spry Fox back to its founders. The latest closures follow significant layoffs at Refactor Games, which worked on Netflix’s recently launched FIFA World Cup: Launch Edition, after funding from Delphi Interactive was reportedly withdrawn.

Netflix has indicated that it is shifting its focus toward games aimed at children, party games, narrative-driven experiences, and titles with broader appeal. Recent releases include Toca Boca Jr Kitchen, an open-ended cooking game for kids, and Netflix Minigolf, a couch co-op party game featuring minigolf courses inspired by Stranger Things, Squid Game, and Bridgerton.

A spokesperson for Netflix stated, “We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities.”

Night School is particularly recognized for Oxenfree, the celebrated supernatural adventure game released in 2016. The studio later launched Afterparty and, after being acquired by Netflix, released Oxenfree 2: Lost Signals and the Black Mirror-inspired mobile game Thronglets.

Its latest title, Unhinged, debuted just six weeks ago. This 30-minute first-person horror game, featuring Zoë Kravitz, Sadie Sink, and Troy Baker, streams on Netflix for TV and utilizes a phone as its controller. In a preview, it was described as an intriguing experiment that could pave the way for Netflix’s gaming future. Netflix co-CEO Greg Peters noted that the game had achieved “really solid numbers.”

Moonloot, which had not yet released a game, was reportedly developing an Animal Crossing-style life simulation.

Additionally, Netflix is reducing staff within its broader games team, though it has not disclosed the number of affected employees.