Netflix closes Oxenfree developer Night School, just a month after praising its new game as one of the company's 'most successful cloud game debuts'
Moonlight, a studio Netflix founded in 2022, is also being closed.
Less than two months after debuting Unhinged, Netflix has announced the closure of its developer Night School Studios, alongside its Helsinki-based Moonloot studio. In a statement to PC Gamer, a Netflix spokesperson confirmed the closures, attributing the decision to a strategic reorganization within the company's gaming division.
Netflix continues to view games as a means to diversify its entertainment offerings, currently focusing on Kids, Party, Narrative, and Mainstream categories. Unhinged, developed by Night School and released on June 30, was hailed as a success by co-CEO Gregory Peters during the company's Q2 earnings report. However, just 28 days later, Netflix is making organizational changes to prioritize strategic and efficient execution in its gaming business.
Night School, acquired by Netflix in 2021, is renowned for the critically acclaimed Oxenfree series, including Oxenfree (2016), Oxenfree 2: Lost Signals (2023), and Afterparty (2023). The studio's mission to push the boundaries of storytelling in games aligned with Netflix's vision, leading to the acquisition. Despite the closure, Netflix expresses gratitude for Night School's contributions.
The company's focus has reportedly shifted towards AI-driven gaming, with the recent hiring of a Director of Generative AI for Games.
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