Netflix closes Night School Studio and Moonloot Games

Netflix has recently shut down Night School Studio and Moonloot Games, located in Helsinki. A company spokesperson disclosed to Game Developer that additional positions within its gaming teams are also being cut, although the number of affected employees remains unspecified.

Originally acquired in 2021, Night School Studio was part of Netflix's strategic move into the gaming industry, coinciding with the appointment of Mike Verdu as Vice President of Game Development.

Throughout 2024, Netflix's gaming division experienced a reorganization. Alain Tascan was appointed as the President of Games, while Mike Verdu moved to a role focusing on generative AI before leaving the company by March 2025.

Night School recently released its game, Unhinged, about six weeks ago. The studio gained fame for its popular 2016 game, Oxenfree, and its sequel, Oxenfree 2: Lost Signals, launched in 2023.

Earlier in February, Night School had already cut an unspecified number of jobs. Reports suggested these reductions would not impact games still in development.

Unhinged was recently recognized as one of Netflix's most successful cloud launches, alongside Refactor Games' FIFA World Cup: Launch Edition. Refactor Games, partially owned by Delphi Interactive, recently reduced its workforce by 85%.

Moonloot was established in 2022 under the leadership of Marko Lastikka. Though the studio had not announced any projects, it was reportedly working on a game akin to Animal Crossing.

A Netflix spokesperson emphasized to Game File that games remain a significant part of their entertainment spectrum and that the company is adjusting to stay aligned with core focus areas.

In February 2024, six game launches were canceled by Netflix to ensure their offerings better matched subscriber preferences. The company has since redefined its gaming strategy to concentrate on mainstream, narrative, party, and kids games.

The introduction of Netflix Playground, a dedicated app for children's games, led to a tripling in daily user numbers and a 600% rise in children's engagement year-on-year.

Currently, Next Games is the only internal game development studio at Netflix, working alongside external partners. Netflix acquired Next Games in 2022 for around €65 million.

As Netflix pivots into gaming, it has made several strategic moves, acquiring, shutting down, or divesting studios. In 2024, Team Blue was closed down, and later in October, Boss Fight—a studio acquired in 2022—faced the same fate. Subsequently, 26 former Boss Fight developers formed a new company named Sunwise Games. In December of the same year, Netflix sold Spry Fox back to its original founders.