Netflix closes Night School studio shortly after lauding Unhinged's solid performance

Netflix has decided to shut down the Night School studio that created Oxenfree II, Black Mirror: Thronglets, and the mobile horror game Unhinged. This decision came shortly after Netflix executives praised Unhinged's solid performance. At the same time, Netflix said it plans to close the Helsinki-based Moonloot Games studio and reduce staff in its internal games team. The moves are part of a broader reshuffle of Netflix's video game division.

Engineers who worked on Night School's projects lose access to an internal studio that specialized in narrative horror and mobile titles. They may need to seek roles at other Netflix studios or move to external developers that partner with Netflix. The closure also eliminates a source of expertise in creating story-driven and smartphone-controlled games. For engineers building games on Netflix's platform, the change means fewer internal resources for prototyping and support.

The internal studio approach may not fit Netflix's new emphasis on kids games, party games, narrative experiences, and mainstream titles sourced from outside developers. Studios that focus on genres outside those priorities, like Night School's horror-oriented output, are more likely to be closed. As a result, the internal development model stops working when a studio's portfolio does not match the stated strategic focus. Engineers should expect that future internal teams will be aligned more closely with those four categories.

Netflix expanded its game division after buying several studios and later brought in a former Epic Games executive to lead the effort. The company has said it will prioritize kids gaming, party games, narrative experiences, and mainstream titles such as the FIFA World Cup: Launch Edition. At present, the only studios remaining under Netflix are Next Games in Helsinki, which works on couch-based experiences, and Netflix Games Studio, which mainly signs deals with external developers. Engineers working with Netflix can anticipate more collaboration with external partners and fewer large internal teams.