Netflix Shuts Down AAA Game Studio Developing Third-Person ARPG for PC

Netflix has recently made the decision to close down its AAA game studio, known internally as Team Blue, despite initial efforts to establish a foothold in the gaming industry. The studio, based in Los Angeles, California, was established around two years ago with the aim of developing a third-person action RPG for PC and potentially other platforms.

The studio had attracted top talent from the gaming industry, including individuals like Joe Staten, known for his work on various Halo games, ReCore, and Crackdown, and Raf Grassetti, the former Art Director at Sony Santa Monica on the God of War games. However, despite the high-profile hires and promising projects in the pipeline, Netflix has opted to shut down this particular venture.

The closure of the studio was revealed by Stephen Totilo’s Game File, who reported that the decision was part of broader changes within Netflix’s gaming division. These changes began in July when the former chief, Mike Verdu, was reassigned to a different role. Alain Tascan, previously the executive vice president of game development at Epic Games, took over Verdu’s position. Tascan subsequently made additional hires, with reports indicating around 35 staff cuts following his appointment.

Despite the closure of the AAA game studio, Netflix remains committed to its presence in the gaming industry. The company’s other studios, such as Night School, Next Games, Spry Fox, and Boss Fight Entertainment, are set to continue their operations. While these studios primarily focus on mobile games, the future direction of Netflix’s gaming strategy remains uncertain. It is unclear whether the company plans to revisit its AAA multiplatform ambitions or if it will concentrate on the mobile market for the time being.

As Netflix navigates the evolving landscape of the gaming industry, only time will reveal the company’s long-term strategy and whether it will pivot back to its initial aspirations in the gaming space.