Netflix shifts gaming strategy and closes two studios

Netflix is restructuring its gaming division, shifting its strategy away from prestige indie titles toward casual, mainstream, and social gaming experiences. As part of this realignment, the company has closed two studios: Los Angeles-based Night School Studio, which developed the acclaimed Oxenfree, and Helsinki-based Moonloot Games.

The new strategic focus will prioritize children’s games, party games, puzzle titles, narrative experiences, and mainstream content designed to work well on televisions. This includes expanding on “social” gaming, where subscribers can use mobile devices as controllers for shared experiences. While the company is moving away from high-end AAA and prestige indie development, it continues to integrate games into its streaming ecosystem and pursue major partnerships, such as its recent collaboration with FIFA.