Netflix Is Shutting Down Its AAA Gaming Studio: What Happens Now?

Netflix’s gaming ambitions have taken a sudden twist this month. Netflix has shut down its Southern California-based video game company, known internally as Team Blue, which specialised in AAA game development. This marks a major shift in the company's gaming strategy after initially bringing on senior executives from iconic franchises like Halo, Overwatchand God of War. However, all the executives have since left the company.

Team Blue was reportedly working on a multi-platform AAA game for an original IP, but Netflix made the decision to close the studio before the project could be released. The news was first reported by Game File and later confirmed by Netflix.

Since entering the gaming space in 2021, Netflix has steadily expanded its offerings. Initially focusing on hyper-casual mobile games, the platform has since evolved to feature exclusive mobile adaptations of iconic titles like the Grand Theft AutoandHades.

Netflix has ventured into original content with internally developed games such asCosy Grove: Camp SpiritandOxenfree II: Lost Signals, marking its growing presence in the gaming industry.

The shutdown of Netflix’s AAA game studio suggests a possible scaling back of the company’s ambitions in large-scale game development.

Despite this, Netflix continues to offer a growing library of over 100 video games through its subscription service. The closure points to a likely shift in strategy, with the company potentially focusing more on smaller or mobile-based games rather than developing expansive AAA titles.

According to Variety, Netflix has highlighted its success in developing games based on its own IP, committing to release one new game each month under its Netflix Stories lineup. The latest release is based on the hit teen drama Outer Banks. Other games include titles inspired by Emily in Paris, Virgin River and Love is Blind.

Additionally, Netflix is preparing to launch independent mobile games set in the universes of Squid Game and Zack Snyder’s upcoming Rebel Moon franchise, further expanding its gaming portfolio.