Netflix Closes AAA Video Game Studio in Southern California

Netflix has closed its Southern California-based video game studio known as "Team Blue," which focused on developing AAA games. The studio was part of Netflix’s broader foray into the gaming industry and had notable executives such as Chacko Sonny, Joseph Staten, and Rafael Grassetti, who have now left the company following the closure in October.

While Netflix declined to comment on the closure, the streaming giant entered the gaming market in November 2021 and has since acquired four gaming studios: Night School, Boss Fight, Next Games, and Spry Fox. In addition to these acquisitions, Netflix established two internal studios, one in Southern California and another in Helsinki.

In a strategic move, Netflix appointed Alain Tascan from Epic Games as its new president of games, shifting Mike Verdu, the former vice president of games, to focus on innovative game creation and development. Despite the closure of Team Blue, Netflix remains committed to expanding its gaming business. However, this decision has raised questions about the company’s future plans in TV and cloud gaming.

Sources suggest that Netflix was not interested in pursuing PC/console-specific game development, and the closure of Team Blue indicates a shift in focus away from those areas. While Netflix has released over 100 mobile games, it remains unclear what AAA projects Team Blue was working on and what Netflix’s strategy will be for non-mobile games moving forward.

Netflix has seen success in developing games based on its original IP, with plans to release one new game per month under its "Netflix Stories" line. Recent releases include games inspired by popular shows like "Outer Banks," "Emily in Paris," "Virgin River," and "Love Is Blind." The streaming service is also gearing up for the launch of standalone mobile games set in the worlds of "Squid Game" and Zack Snyder’s "Rebel Moon" franchise.

The closure of Team Blue was first reported by Game File, shedding light on Netflix’s decision to shut down the studio. While the closure may raise questions about Netflix’s gaming ambitions, the company continues to innovate and expand its gaming offerings to engage its audience further.