Netflix Shuts Down Night School Studio Six Weeks After Game Release

Netflix is shutting down two of its internal game development studios, a move that includes the closure of Night School Studio, the developer behind the recently released horror game "Unhinged." The streaming giant acquired Night School Studio in September 2021, with the studio's flagship title "Unhinged" launching on October 26, 2023. The closure of Night School Studio, which was known for its narrative-driven games like "Oxenfree" and "Afterparty," comes as a significant blow to its employees and the gaming community, especially given the short timeframe since "Unhinged" became available. The decision to close the studio, which had been operating under Netflix's gaming division for just over two years, was announced on December 4, 2023. This move signifies a broader strategic shift within Netflix's gaming ambitions, which have seen fluctuating levels of investment and success since its initial foray into the market. The company has also announced the closure of Moonloot, a Helsinki-based studio founded in 2022, which was reportedly working on a new title for Netflix. The exact reasons for these closures were not detailed by Netflix, but the company stated in an internal memo that it was "incredibly grateful to the talented colleagues we're saying goodbye to" and that "this is not a reflection of the great work the teams have done." Netflix's gaming division has faced challenges in establishing a consistent hit or a widely adopted subscription service, despite investing in a variety of games and studios. The company's strategy has involved acquiring established indie developers like Night School Studio and investing in original titles, aiming to leverage its massive subscriber base. However, the success of these ventures has been inconsistent, leading to a reassessment of its gaming portfolio. The closures are part of a larger trend of consolidation and strategic re-evaluation within the gaming industry, as companies navigate economic pressures and evolving player expectations. Netflix's gaming efforts began in earnest in 2021, with the launch of its mobile games service, which offered a selection of titles to subscribers without ads or in-app purchases. The company has since expanded its offerings, including PC games, and has expressed ambitions for cloud gaming. However, the financial performance and user engagement metrics for its gaming division have remained a point of scrutiny. The closure of Night School Studio, in particular, raises questions about the long-term viability of Netflix's internal development strategy and its ability to foster creative talent within its corporate structure. The company's focus moving forward in gaming remains to be seen, but these studio closures suggest a more streamlined or perhaps externally-focused approach to content acquisition rather than extensive in-house development.