Netflix Shuts Down AAA Gaming Studio Amid Strategic Changes but Maintains Focus on Gaming Division

Netflix has been slowly building up its gaming division for a number of years now. The company first made its mark with mobile games before setting up a AAA Gaming studio in Los Angeles about two years ago, naming former Overwatch executive producer Chacko Sonny as head of the operation.

Netflix AAA Gaming Studio
AAA Gaming studio

More About the Netflix Shuting Down AAA Gaming

The studio hoped to make a third-person action RPG for PC and maybe consoles. In an effort to help reach that goal, the company has hired some big industry talent: former relic Joe Staten who had worked as creative director and writer on multiple Halo games; ReCore, Crackdown, Raf Grassetti, the former Art Director at Sony Santa Monica behind the God of War series.

image 159 Netflix Shuts Down AAA Gaming Studio Amid Strategic Changes but Maintains Focus on Gaming Division
AAA Gaming studio

Netflix has chosen to shutter this studio — known internally as “Team Blue” — despite creating being producing a bevy of talent. The news was broken by Stephen Totilo at Game File, who added that the Netflix gaming initiative has undergone its share of high-level shakeups since July when previous chief Mike Verdu took another posting. Verdu’s role has been filled by Alain Tascan, the former executive vice president of game development at Epic Games.

Business Insider reported last week that Tascan had hired a former Epic Games VP of game development as its new VP of Game Technology and Portfolio Development. While reports indicated that the opening has caused approximately 35 positions to be eliminated during tutelage under Tascan, sources from elsewhere went on to say those numbers were a bit inflated.

image 157 Netflix Shuts Down AAA Gaming Studio Amid Strategic Changes but Maintains Focus on Gaming Division
AAA Gaming studio

However, Netflix is not abandoning its gaming efforts. Other studios under its umbrella—such as Night School (known for Oxenfree), Next Games, Spry Fox, and Boss Fight Entertainment—are expected to continue operations as usual. Most of these studios focus on mobile games, raising the question of whether Netflix will eventually revisit its ambitions for triple-A multiplatform titles or if it plans to concentrate solely on the mobile gaming market for the time being.

FAQs

Why did Netflix shut down its AAA gaming studio?

Netflix decided to close the studio, known as Team Blue, due to major changes in its gaming department and a strategic shift in focus.

Will Netflix continue to develop games?

Yes, Netflix plans to keep its other studios operational, focusing on mobile games, though its future in AAA multiplatform games remains uncertain.

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