The hope that Netflix could produce something beyond casual sports or party games has been shattered with today's news that Oxenfree developer Night School is closing down.
Just a few weeks ago, Night School released the creative horror game Unhinged, starring Zoë Kravitz and Sadie Sink, which cleverly linked mobile and TV screens to create a brief yet memorable experience.
In his Eurogamer article, Matt wrote that Unhinged offered "the kind of interesting interactive narrative experimentation I was hoping to see when Netflix first announced its push into games." He also added: "If Unhinged is any indication, Night School could have been Netflix's secret weapon if given more opportunities."
Unfortunately, that's no longer possible. Netflix confirmed to Game File overnight that it will be shutting down Night School Studio as well as another studio, Moonloot—which was reportedly developing a game similar to Animal Crossing.
According to Game File, Netflix stated that this move aims to prioritize game genres you'd likely overlook: children's games, party games, "narrative-driven content," and "games with mass appeal." A Netflix spokesperson said: "We see an opportunity to execute with greater focus, so we are reorganizing the business to align with these priorities."
The company is also cutting an unspecified number of positions within its internal game teams. "We are deeply grateful to the talented colleagues we had to say goodbye to today. Thank them for all their contributions to Netflix, and we wish them the best in their future endeavors," the spokesperson added.
Netflix acquired Night School Studio in 2021, when the studio was working on Oxenfree II. The game launched successfully a few years later, cementing the studio's reputation for gentle horror games centered around "walk-and-talk" mechanics. Afterward, likely at Netflix's direction, the studio shifted its creative focus, with its next project becoming Thronglets, an interactive companion experience for Black Mirror—which was actually quite good.
Thronglets brings to life the concept of a game from an episode of Black Mirror—in which characters become obsessed with a game, leading to horrifying consequences—a twist that's hardly surprising given the show's penchant for such storylines. It blends god-sim gameplay with Tamagotchi-like elements and features numerous fourth-wall-breaking moments, creating an experience that truly captures the essence of Black Mirror. It's invigorating to see something like this.
These closures are the latest moves in Netflix's ongoing contraction of its gaming business. The company is reversing course from what seemed a few years ago to be a major push into game production. In 2024, a studio led by the former creative director of Halo had its AAA game project canceled; subsequently, Squid Game game developer Boss Fight closed in October 2025; and a few months later, casual online game developer Spry Fox was sold back to its founders.
Netflix also partnered with Monument Valley developer Ustwo Games to exclusively release Monument Valley 3, but the game failed to find a sufficient audience and was eventually removed from the Netflix platform along with many other more traditional titles. Ustwo is now returning to its PC-first development strategy.
"Games remain an opportunity for us to diversify the entertainment offerings for our Netflix members," a Netflix spokesperson told Game File. However, with its operations now reduced to just party game developer Next Games and a shift in strategic direction, it's unlikely these games will resonate with audiences the way Night School's titles did.