As first reported by Stephen Totilo’s Game File, Netflix is permanently closing Los Angeles-based Night School Studio and Helsinki-based Moonloot. This news comes following the studio behind the FIFA World Cup tie-in, not under Netflix’s studio umbrella, also closed in recent weeks.
For long-time followers of Netflix’s gaming journey, the shuttering of Night School is particularly heartbreaking. We covered Netflix’s acquisition of Night School back in 2021—a milestone moment that served as the streamer’s first real stake in the ground for first-party development. The award-winning studio followed up their beloved supernatural thriller Oxenfree with the Netflix-exclusive Oxenfree II: Lost Signals, alongside a mobile tie-in for Black Mirror.
Tragically, Night School is being shut down just six weeks after releasing Unhinged, a novel 30-minute first-person horror game playable on TVs via cloud streaming. In a stark reminder of how quickly fortunes can change in this industry, Netflix co-CEO Greg Peters had just praised Unhinged during a recent investor call, citing “really solid numbers.”
Moonloot, a younger Helsinki studio founded in 2022, is also being dissolved before it could leave a lasting mark on the platform. Netflix’s other studio in that region of the world, Next Games, continues to operate with the team having recently launched its Minigolf game and a daily trivia title.
Netflix’s golden age of gaming in those first years will remember the sudden closure of Team Blue in 2024, a high-end start-up studio led by Halo and Call of Duty veterans. The bloodletting continued through last year. Last October, Netflix shuttered Boss Fight Entertainment and then, a few months later, in December, the company sold cozy game developer Spry Fox back to its founders.
According to Game File, Netflix is now attributing these closures to a shifting priority toward kids’ gaming, story-driven fare, party games, and mainstream hooks, such as their recently released FIFA title.
A recent survey sent to subscribers, including myself, seems to prioritize more casual games and, more importantly perhaps, titles with high replay value, which arguably Unhinged does not fall into, nor do the indie titles the studio is otherwise known for.
“We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” a Netflix spokesperson told Game File. Regarding the job losses, the rep added: “We are incredibly grateful to the talented colleagues we’re saying goodbye to today. We thank them for all their contributions to Netflix, and wish them the best.”
Sam Warner, game director at Night School Studio, wrote shortly after the news broke:
“Despite directing Unhinged and shipping it 6 weeks ago to millions of excited, satisfied players, it looks like I’m back on the market (along with the rest of Night School Studio)! I’m going to take a bit of time to recalibrate and connect with people I’ve missed but if anyone is looking for a T-shaped, technically and creatively energized leader who loves innovation and making wild stuff, please don’t hesitate to reach out.
I’m so proud of what we accomplished, and millions of people agree that we made a great product! Onward to the next exciting thing!”
