Netflix shuts down AAA gaming studio

Netflix’s foray into the gaming industry has been primarily focused on indie and mobile games. However, the company recently made a strategic move to venture into AAA game development by hiring executives with experience from renowned franchises such as Halo, Overwatch, and God of War. This shift in strategy led to the creation of a AAA studio within Netflix known as Team Blue.

In 2022, Netflix brought on board Chacko Sonny, the former head of Overwatch, to lead a new AAA studio based in Southern California. Subsequently, Joseph Staten, a former executive from the Halo franchise, joined as the Creative Director, along with Rafael Grassetti, the art director from God of War. At the time of their hiring, Staten mentioned that they were working on a multi-platform AAA game featuring a brand-new intellectual property.

Despite the initial enthusiasm surrounding the establishment of Team Blue, recent developments indicate a change in direction for Netflix’s gaming division. The company has confirmed the closure of Team Blue, and former executives like Staten and Grassetti are no longer associated with the project. Engadget reached out to them for further comments on this decision.

Netflix first entered the gaming scene in 2017 with the release of the retro-inspired Stranger Things mobile game. Over the years, their gaming strategy mainly revolved around acquiring mobile publishing rights for respected indie titles like Into the Breach and Terra Nil, along with developing in-house mobile games. By 2023, Netflix had nearly 90 gaming titles in various stages of development through collaborations with both in-house and partner studios.

These games are accessible through the Netflix app, allowing users to play them directly on their devices, aligning well with the company’s overall streaming strategy. The closure of the Team Blue AAA studio marks a shift from this mobile-centric approach to a more ambitious and risky venture in the AAA gaming space. As noted by Engadget’s Igor Bonifacic, funding the development of a multiplatform AAA game represents a significant departure from Netflix’s previous gaming endeavors and introduces a new level of complexity and uncertainty to their gaming portfolio.