Netflix has closed one of its internal game studios, Team Blue, which was founded in 2022 and based in Los Angeles. The studio had been working on a triple-A PC game but was shut down before it could release any products. This unexpected closure has led to the loss of the talent Netflix had heavily invested in hiring, with some employees departing as part of broader layoffs in the company’s games division. The move signals potential shifts in Netflix’s gaming plans.
Reports from Game File indicated that Team Blue was developing a high-budget, multi-device game. The studio had attracted prominent developers from well-known game companies. Among them were Chacko Sonny, former executive producer of Overwatch; Joseph Staten, former creative lead on Halo; and Rafael Grassetti, formerly the art director at Sony Santa Monica. With the closure of Team Blue, these key figures have left Netflix, marking the end of a highly anticipated project.
Even with the closure of Team Blue, Netflix continues its efforts in gaming through other internal studios. The company has acquired developers like Night School, Boss Fight, Next Games, and Spry Fox, while also establishing its own studio in Helsinki. For now, those other studios remain operational, though some reports suggest that Netflix has recently laid off additional staff in its gaming division, signaling possible downsizing or restructuring within the unit.
Netflix has also been adjusting its gaming strategy throughout the year. Mike Verdu, who had initially spearheaded the company’s gaming efforts, moved into a new role, and Netflix hired Alain Tascan as the new president of games. This leadership change reflects a shift in direction for the gaming initiative, with Netflix appearing to re-evaluate its approach. Tascan’s hiring suggests a fresh perspective for the company’s future in gaming.
Part of this strategic shift includes a stronger focus on mobile games. Earlier this year, Leanne Loombe, Netflix’s vice president of external games, explained that subscribers tend to favor short-form, mobile-friendly games that are easy to pick up and play. As a result, Netflix has embraced a mobile-first approach, aiming to deliver games that cater to these preferences while continuing to explore its larger goals in the gaming space.
