Netflix’s "Team Blue" of Halo, Overwatch, and God Of War veterans disbands before releasing any games

Netflix has made the decision to close down one of its highly anticipated video game ventures, a California-based studio known as Team Blue. Comprised of former developers from renowned franchises such as Halo, God of War, and Overwatch, Team Blue was a key component of Netflix’s ongoing expansion into the realm of gaming, referred to by some as the "greasy screen."

The news of Team Blue’s closure was first reported by Gamefile and Stephen Totillo, citing a company representative. While Netflix has not officially confirmed the closure, it is known that Team Blue included industry veterans such as Chacko Sonny, former executive producer of Overwatch, and Rafael Grassetti, former art director of God of War. Joseph Staten, an original developer of Halo who joined Team Blue in April 2023, revealed that the team was actively working on a new AAA multiplatform game and original IP.

Netflix has been actively pursuing a foothold in the gaming industry for several years. Their gaming endeavors began with the introduction of mobile games on their platform in 2021, followed by the acquisition of studios such as Night School Studio, Next Games, and Boss Fight Entertainment in subsequent years. In 2022, Netflix signaled its intent to develop a triple-A PC game by expanding its operations in Los Angeles.

The streaming giant further delved into gaming with the trial of game streaming in August 2023 and discussions with prominent game developers like Rockstar to bring popular titles to their platform. As of July 2024, Netflix Games boasted over 80 games in development, with approximately 100 games already available. However, despite these efforts, Netflix’s Co-CEO and President Gregory K Peters acknowledged that engagement with games on their platform remains relatively low.

The closure of Team Blue did not come as a complete surprise to industry observers. Netflix’s limited experience in managing in-house game development teams, coupled with the high costs associated with producing AAA multiplatform games, likely influenced the decision. The fate of prominent Team Blue members like Grassetti, Staten, and Sonny remains uncertain, but their track record suggests they will find success in their future endeavors.

While the closure of Team Blue marks a setback for Netflix’s gaming ambitions, it raises questions about the streaming giant’s long-term vision in the gaming industry. With the landscape of entertainment continually evolving, it remains to be seen how Netflix will navigate the competitive gaming market and carve out a lasting presence beyond mere profit-seeking motives.