It wouldn't be 2024 if there wasn't monthly news about another studio closure or mass layoffs affecting the video game industry. The twist this time is that the studio in question was one of the internal gaming studios being run by Netflix.
As Stephen Totilo's Game File reported, as of October 2024, Netflix closed one of its studios known as Team Blue. It is the first known shuttering of a Netflix game studio since the streamer started investing in gaming in 2021.
Team Blue was run by former Overwatch executive producer Chacko Sonny, who Netflix lured from Blizzard to build the studio. According to Totilo, Sonny hired several game industry veterans with experience in AAA games like Halo and God of War. Allegedly, the studio was developing a multi-platform AAA game. Team Blue was closed before any game could be released or even announced.
Since starting the gaming experiment, Netflix has added a bevy of games to the service, including ambitious plans to add one new game monthly. Most are simple games based on existing Netflix properties like Love is Blind or Stranger Things. However, the company has added indie greats like Into the Breach or mobile versions of popular games like the recently added GTA trilogy remaster, which is the worst version.
Other internal studios have added interesting games like Oxenfree II, made by Night School Studio and apparently still operating. As far as we can tell, other mobile-focused studios, like Spry Fox and one in Helsinki, are all still open.
Based on their LinkedIn profiles, Sonny Chacko and other significant hires like Joseph Staten and Rafael Grassetti are still working at Netflix. However, a Netflix rep reportedly told Totilo that they were no longer with the company and that Team Blue was shut down.
The company's AAA ambitions may be dead, but it's unclear if the streamer will be moving away from all forms of gaming for the long term.
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