Netflix Closes ‘AAA’ Gaming Studio, Leading Developers Depart Company

Netflix has recently made the decision to shut down its triple-A gaming studio located in Southern California, resulting in the departure of several prominent developers from the company. The closure of the studio has raised questions about Netflix’s future gaming endeavors and strategic direction in the gaming industry.

The studio, which counted former Overwatch executive producer Chacko Sonn and veteran Halo creative director Joseph Staten among its team members, has ceased operations. Sonn, Staten, and art director Rafael Grassetti, previously associated with God of War developer Sony Santa Monica, have all left Netflix following the closure of the gaming studio.

Joseph Staten, a key figure in the development of the Halo franchise, joined Netflix as the creative director of Netflix Games in April of the previous year. His role involved spearheading the creation of a new triple-A multiplatform game and original intellectual property for the streaming giant’s gaming division.

While Netflix has not provided specific reasons for the closure of the gaming studio, industry observers speculate that it signifies a shift in the company’s gaming strategy beyond its current focus on mobile gaming titles. Netflix has made over 100 games available through its Netflix Games service, which are accessible to all subscribers without additional charges, in-app purchases, or advertisements. These games are often inspired by popular Netflix series and films such as Emily in Paris, Too Hot to Handle, Virgin River, and upcoming titles like Chicken Run: Eggstraction and Squid Game: Unleashed.

Heading the video game division at Netflix is Alain Tascan, a former executive vice president of game development at Epic Games. Tascan is supported by Jeet Shroff, another ex-Epic Games employee who recently joined Netflix as the vice president of game technology and portfolio development.

Despite previous reports indicating an increase in gaming engagement on the platform, Netflix acknowledged that its gaming division remains relatively small compared to its film and series business. The company remains committed to expanding its gaming offerings and investing in the gaming space to attract a broader audience.

In a recent financial call, Netflix’s co-CEO Greg Peters expressed optimism about the growth of gaming engagement in the coming years. With plans to release a new game to subscribers each month, Netflix currently has over 80 games in development. Peters highlighted the progress made in the gaming initiative over the past three years and emphasized the company’s dedication to enhancing its gaming portfolio.

While Netflix continues to refine its gaming program based on user feedback and performance data, the focus remains on developing games tied to popular Netflix intellectual properties. Interactive narrative games featured in the Netflix Stories app have shown promise, with plans to further leverage specific Netflix IPs to engage members and enhance the gaming experience.

Netflix’s foray into the gaming industry reflects its ongoing efforts to diversify its entertainment offerings and engage with audiences in new and innovative ways. As the company navigates the evolving landscape of gaming, it remains committed to delivering unique gaming experiences to its subscribers.