Netflix has reportedly shut down its internal studio called Blue, composed of AAA video game industry veterans, without releasing any games officially.
According to a report from Game File, Netflix has closed its Southern California studio this month. Despite being one of several internal studios at Netflix developing new titles, Blue attracted attention due to its high-profile hires in recent years.
Although Netflix did not officially disclose Blue’s projects, there were indications for those who closely followed. Job listings found by MobileGamer.biz in November 2022 hinted at Netflix working on a “brand-new AAA PC game” and seeking individuals with experience in first-person or third-person shooters. This signaled a shift towards a multi-platform strategy in gaming for the company.
This direction was reinforced by the experienced veterans leading the studio. Chacko Sonny, former executive producer at Overwatch, Rafael Grassetti, former art director of God of War, and Joseph Staten, known for his work on the Halo franchise, were key hires at Blue. Staten mentioned on his X account that Blue was developing an “original IP.”
While the executives have not commented on the shutdown publicly, Grassetti’s post of an out-of-context popcorn gif hinted at their exit from Netflix. According to Game File, all three executives have left the company.
Despite this setback, Netflix still maintains four internal studios actively producing games. They have acquired Night School Studio, Next Games, and Boss Fight Entertainment, and established a studio in Helsinki in 2022. Additionally, Netflix offers third-party games on its platform accessible to subscribers, including games like Grand Theft Auto: San Andreas, Spiritfarer, Into the Breach, and Shovel Knight Pocket Dungeon.