Netflix Closes Two Gaming Studios, Together with – Aug 13, 2026

Netflix has spent the final 5 years trying to develop its chokehold on the movie and tv trade into the online game house, however it’s had restricted success. Today, Game File reports that the streaming big is receding from the gaming world somewhat extra by closing two studios: Moonloot, which had but to launch a sport, and Night School, identified for its work on Oxenfree and Afterparty. Netflix can be chopping employees from its inside workforce, although it “declined to say how many jobs were being lost” when talking to Game File.

Moonloot is a Helsinki-based workforce, founded in September of 2022 and led by Marko Lastikka, who had expertise working at Zynga and EA within the years prior.  Unfortunately, Moonloot by no means acquired the possibility to launch a sport. 

Meanwhile, Night School made a reputation for itself lengthy earlier than its Netflix acquisition, releasing Oxenfree in 2016 and Afterparty in 2019. Under Netflix, it additionally launched Oxenfree II: Lost Signals in 2023, Thronglets in 2025, and Unhinged, which launched very not too long ago, on June 30. Game File studies that Netflix co-CEO Greg Peters praised Unhinged in a current investor name, however given at this time’s information, it appears Netflix was nonetheless dissatisfied with Night School.

The indie studio’s acquisition in 2021 was one in all Netflix’s earliest investments on the earth of video video games, so closing the studio is a major step. Game File says Netflix is selecting to focus its future efforts on “kids gaming, party games, story-driven fare and games with mainstream hooks, such as a recently released FIFA game.”

Studio closures and mass layoffs have sadly grow to be commonplace within the online game trade over the previous a number of years. Earlier this week, Directive 8020 developer Supermassive had its third wave of layoffs since 2024. Earlier this 12 months, Battlefield Studios had layoffs regardless of releasing the best-selling sport of 2025; Bungie was decimated and Destiny 2 launched its closing replace, and Xbox parted methods with a number of of its improvement studios, shedding hundreds. That final occasion, a minimum of, not too long ago acquired pushback; simply yesterday, Xbox’s new CEO visited Bethesda and was greeted by a giant inflatable rat.

If you wish to look again on Night School’s nice video games, try our critiques for Oxenfree, Afterparty, and Oxenfree II: Lost Signals.