Netflix is returning ownership of Spry Fox to the studio's original founders

Netflix has decided to sell Spry Fox back to its original founders. Reports from Game File indicate that David Edery and Daniel Cook have regained ownership of the studio they established. Spry Fox aims to carry on with the development of Spirit Crossing, an MMO scheduled for mobile release under Netflix's banner. However, the studio has been provided the freedom to seek additional publishers for platforms beyond mobile.

With this return to independence, Spry Fox faces the challenge of either securing adequate funding to ensure its financial sustainability or banking on Spirit Crossing's commercial triumph. Originally conceived without monetization in mind due to Netflix's subscription model, the game will necessitate adjustments to incorporate financial strategies.

Expressing his appreciation for the collaboration with Netflix, Edery remarked, “We’re so grateful for our time at Netflix and our continued partnership publishing Spirit Crossing next year.” He further emphasized the game's mission to unite people and to foster kindness, underlining the importance of expanding its reach across multiple platforms.

Back in November 2022, Netflix acquired Spry Fox as part of its strategy to expand into gaming, making it the fourth purchase over a period of 14 months and its sixth internal game studio. This was during a phase when Netflix was significantly growing its gaming segment.

Netflix's approach shifted when, in June 2024, Mike Verdu transitioned from the role of VP of games to VP of generative AI. His departure from the company occurred in March of the following year, with Alain Tascan, a former executive from Epic, stepping in to lead Netflix's gaming division.

Additionally, in 2024, Netflix shut down Team Blue, its AAA studio in California, and made workforce reductions at Night School Studio, another one of its acquisitions from 2021.

Moving into 2025, Netflix announced that six previously disclosed games, including three projects from Klei Entertainment, would not launch on its platform. This decision was part of an effort to modify its game offerings to resonate more with subscriber interests.

As of September 2024, downloads of games on Netflix had surpassed 210 million.