Netflix has closed Night School Studio and Moonloot Games

Netflix has decided to close both Night School Studio and Moonloot Games, a company based in Helsinki.

An official mentioned to Game Developer that there would be additional cuts to roles within its gaming teams, although exact numbers were not revealed.

Having ventured into the gaming industry, Netflix purchased Night School in 2021 and appointed Mike Verdu as Vice President of game development.

In a restructuring during 2024, Alain Tascan took over as president of games, while Verdu took a role as VP of generative AI before he left in March 2025.

Six weeks prior, Night School released a new game called Unhinged. They are recognized for their 2016 release, Oxenfree, and its sequel, Oxenfree 2: Lost Signals, launched in 2023.

Earlier in February, Night School reduced its workforce without specifying numbers, although games under development were reportedly unaffected.

Unhinged by Night School was recently noted by Netflix as one of their most notable cloud game launches, along with Refactor Games' FIFA World Cup: Launch Edition. Meanwhile, Refactor Games experienced an 85% staffing cut.

Moonloot, established in 2022 by Marko Lastikka, had been quietly developing a game likened to Animal Crossing.

According to a Netflix spokesperson, games are still seen as a pivotal area to broaden their entertainment offerings, emphasizing their solid progress in crucial areas. As such, reorganizational changes are underway to align business operations with these priorities, as noted by Game File.

In line with these efforts, six game launches were canceled in February 2024 to refine their game selections based on subscriber preferences.

Netflix also outlined a strategy focused on mainstream games, narrative-driven content, party games, and those designed for children.

With the introduction of Netflix Playground in April, a mobile app for children significantly increased its daily users, resulting in a 600% surge in user engagement among kids.

Presently, the only in-house studio at Netflix is Next Games, alongside its external partnerships. Netflix acquired Next Games in 2022 for around €65 million.

Several acquisitions, closures, and sales have marked Netflix's foray into the gaming industry.

In 2024, Netflix closed Team Blue, followed later by shutting down Boss Fight, acquired in 2022. Subsequently, a team of 26 developers from Boss Fight established a new company this year. In December, Netflix sold Spry Fox back to its original founders.