Netflix shuts down AAA internal studio under leadership of Halo creative head Joseph Staten

Netflix has recently shut down its internal game studio in Southern California, known as team ‘Blue’, which was on track to release a high-budget AAA game. This studio was one of several internal studios established by Netflix as part of its foray into the gaming industry. It boasted a talented team including industry veterans like Joseph Staten, the creative lead behind Halo, Chacko Sonny, the executive producer of Overwatch, and Rafael Grassetti, the art director from Sony Santa Monica, known for God of War.

The closure of the studio occurred this month, and all three prominent hires are no longer with Netflix, as confirmed by the company to Game File. While the exact project team ‘Blue’ was working on remains undisclosed, reports suggest they were exploring a large-scale multi-device strategy, potentially expanding beyond Netflix’s current emphasis on mobile gaming.

Joseph Staten, who joined Netflix in April 2023 following his involvement in Halo Infinite, expressed his passion for collaborative world-building, iconic characters, and immersive adventures upon joining the team. Speculation arose when Halo Studios closed its job listing for a creative director, leading to theories that Staten might have returned, although this remains unconfirmed.

Despite the closure of this particular studio, Netflix still maintains other gaming studios, including its inaugural in-house studio in Helsinki. Additionally, the company has acquired renowned developers such as Night School Studio, known for Oxenfree, and Spry Fox, the creator of Cozy Grove.

Reports from July indicated that Netflix has over 80 games in various stages of development, with plans to launch at least one game per month. However, many of these projects are relatively small in scale and tied to popular Netflix series like Selling Sunset and Emily in Paris. This shift towards smaller gaming experiences suggests that Netflix may be prioritizing these projects over the ambitious AAA title that ‘Blue’ was reportedly working on.

In conclusion, while the closure of Netflix’s internal game studio ‘Blue’ marks a setback in the company’s gaming ambitions, Netflix continues to invest in the gaming sector through its other studios and acquisitions, catering to a diverse range of gaming experiences for its audience.