Netflix will shut down its AAA game studio in the United States. The closure of the studio means that staff involved in many of its games will leave immediately.
The closure has been tied to the firm’s focus on smaller games. Netflix entered into the gaming sector to grab a share of the multi-million dollar industry. Since entering the industry, Netflix has since tried to maintain its commitment to the market, developing and expanding to cater to fans worldwide.
The expansion aided the growth of the company which recruited talents worldwide to join its quest to take over the industry.
Netflix closes its internal AAA studio
According to Game File, the studio, named Blue, is based in Southern California. Before the development, the studio was led by Joseph Staten, a former creative director with Halo. Staten was working alongside other gaming veterans in the studio.
Notably, the studio had been in operation for two years before Netflix decided to stop its activities. The studio’s closure is also coming before the release of any project, despite news claiming it had big projects in the works.
The closure also means that the big-name veterans recruited to spearhead several departments will not be forced to depart. Some veterans affected include former Halo director Joseph Staten, Overwatch executive producer Chacko Sunny, and God of War art director Rafael Grassetti.
With Staten directing its affairs, the studio was linked to the release of a shooter game. The departure means the studio will no longer release its much-anticipated multi-platform game.
The closure is coming as a shock to many gamers because Netflix said that it was okay with the company’s results over the three years it has been operating.
During the period, executives at Netflix noted that the firm was committed to gaming, and pushing its ambitions in the industry. At the time, the platform’s CEO Gregory Peters clarified that they were developing about eighty games.
Tweaks to game development approach
Despite its CEO’s recent remarks about 80 games in development, Netflix is yet to release a blockbuster mobile game. The platform will continue to use its game studios in Helsinki, and Night School Studio owned by the developer of Oxenfree.
During the company’s second-quarter 2024 earnings call, its co-CEO Ted Sarandos mentioned that the platform will release games based on shows to engage fans with their favorite storylines.
The closure of the Blue studio in South California and the release of more content has been touted as a major shift in its game development direction. The new approach will see Netflix utilize its entertainment portfolio rather than slug it out in the AAA gaming world.