Netflix has announced the closure of one of its internal game studios, Team Blue, which was on track to release a triple-A title but unfortunately did not produce any content before shutting down. Team Blue, founded in 2022 and based in Los Angeles, was reportedly working on a PC game. Along with the studio closure, Netflix has also lost key talent that it had recently hired and has made additional layoffs in its games division.
Game File reported that Team Blue was developing a “big-budget multi-device strategy” at the time. The studio had brought on board notable names from major games companies, such as Chacko Sonny, the former executive producer of Overwatch, Joseph Staten, the former creative lead on Halo, and Rafael Grassetti, formerly of Sony Santa Monica. The closure of the LA studio has resulted in the departure of these high-profile individuals from Netflix.
Despite the setback with Team Blue, Netflix still has several internal studios dedicated to creating games for its platform. In addition to acquiring studios like Night School, Boss Fight, Next Games, and Spry Fox, Netflix has its own studio in Helsinki. While these studios remain operational, a recent report from Business Insider suggests that Netflix has made layoffs within its games division.
Netflix has also made changes to its games strategy this year, with Mike Verdu transitioning to a new role and Alain Tascan joining as the president of games. Prior to Tascan’s hiring, Netflix’s VP of external games, Leanne Loombe, indicated that the company was moving towards a mobile-first approach for game launches, catering to subscribers who prefer short, “snackable” mobile games.
