Netflix Shuts Down AAA Game Studio, But Remains Committed to Gaming

Netflix has closed its Southern California game studio, codenamed 'Team Blue,' signaling a potential shift in the streaming giant's gaming strategy.

Netflix's foray into big-budget game development has suffered a setback. The streaming giant has closed its Southern California game studio, codenamed "Team Blue," which was working on an ambitious action RPG for PC.

Netflix Shuts Down AAA Game Studio, But Remains Committed to Gaming

Industry Veterans Let Go

The closure marks a disappointing end to a promising venture. Netflix had assembled a talented team at the studio, led by former Overwatch executive producer Chacko Sonny. The studio also boasted industry veterans like Joe Staten (Halo, Destiny) and Rafael Grassetti (Sony Santa Monica Studio).

According to reports from Game File, all three high-profile hires are no longer with Netflix.

Shifting Strategies?

This news follows a series of changes within Netflix's gaming division. In July, the company appointed Alain Tascan (formerly of Epic Games) as the new president of gaming, replacing Mike Verdu, who moved into a different role.

Business Insider reports that Tascan oversaw layoffs in the gaming division last week, affecting fewer than 35 employees.

Mobile Focus Continues

Despite shuttering its AAA studio, Netflix has reaffirmed its commitment to gaming. The company continues to release mobile games based on its popular shows, such as "Too Hot To Handle," "Squid Game," and others.

Uncertain Future for AAA Gaming

It remains to be seen how this closure will impact Netflix's long-term gaming strategy. While the company may be shifting away from expensive AAA development for now, its vast resources and intellectual property still hold potential for future gaming ventures.

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