Netflix closes game studios Los Angeles-based Night School Studio, which it acquired in 2021, and Helsinki-based Moonloot, founded in 2022, and cuts games jobs

Oxenfree Night School and Moonloot closing, as streaming giant continues to shrink internal game studio operation

Game File 2026-08-14 Stephen Totilo

Context & Ripple Effects

Netflix’s 2021 purchase of Night School, its first game-studio acquisition marked an early commitment to building games in-house. That approach had already been narrowed by the shutdown of AAA-focused Team Blue and a stated move toward smaller-scale games.

Closing Night School and Moonloot extends that retrenchment from large-budget ambitions to the studio network itself. It matters because Netflix is now reducing both its internal production capacity and the team supporting it.

First-order effects

Night School Studio and Moonloot cease operating within Netflix, while cuts to the internal games team reduce the people available to develop and support Netflix’s games efforts.
Netflix loses the acquired studio associated with Oxenfree and its Helsinki-based Moonloot team from its in-house games portfolio.

Second-order effects

Netflix’s smaller-scale games strategy, outlined after its earlier studio closure, must now operate with a narrower internal studio base and fewer games staff.
The closures strengthen the parallel with Amazon’s reduction of big-budget games roles: major subscription platforms are concentrating game investment rather than continually expanding owned development teams.

Third-order effects

If this pattern persists, subscription-video companies’ game strategies will be defined less by owning a broad slate of studios and more by selectively funding the formats they can sustain internally.
The industry’s competition for game talent may shift away from platform-owned studio expansion toward smaller teams and narrower mandates as companies reassess the opportunity cost of exclusive game production.

The trend: Subscription platforms are retrenching from broad in-house game-studio buildouts toward more selective, lower-cost gaming strategies.

Discussion

What's on Netflix Kasey Moore on x
Netflix Shuts Down ‘Oxenfree’ and ‘Unhinged’ Developer Night School Studio
@joshfairhurst Josh Fairhurst on x
This sucks - the folks at Night School were early partners with us at Limited Run. They're fantastic and incredibly talented people. I'm really sad to see this news.
@jezcorden Jez on x
Netflix gave up on gaming already, again.
@stephentotilo Stephen Totilo on x
BREAKING: Netflix is shutting down two of its game studios (only one left beyond its central team) - Moonloot, which hadn't released a game - Night School (Oxenfree), which just released Unhinged Netflix says it still see games as an “opportunity” https://www.gamefile.news/...
Sam Warner Sam Warner on linkedin
Despite directing Unhinged and shipping it 6 weeks ago to millions of excited, satisfied players, it looks like I'm back on the market (along with the rest of Night School Studio)! …
Chris Heatherly Chris Heatherly on linkedin
This is very sad. I've long been friends with the Night School: A Netflix Game Studio team and Sean Krankel is one of my favorite people in games. …
Stephen Totilo Stephen Totilo on linkedin
In 2023, the then-head of video games at Netflix made a point of telling me they hadn't cut any jobs. Since then, there's been a new head and a steady cutback of internal game studios. …
Stephanie Bedford Stephanie Bedford on linkedin
Watching the news be broken about Night School and Moonloot today at Netflix games is really hard considering I still have people there that I cared …
Hannah Nicklin Hannah Nicklin on linkedin
This is a real gut punch. I love my time working with the excellent folks at Night School so much. An empathetic, hard working and caring bunch. …
@jessehawken Jesse Hawken on bluesky
Netflix should add some movies made before 1996 to the service instead of this bullshit [embedded post]
@yourkyotowife @yourkyotowife on bluesky
The day I knew was coming is here. I'm so incredibly sad! For a very long time it was my absolute dream to work for Night School and they really influenced the way I think about narrative and performance in games. [embedded post]
@nickjcal Nick Calandra on bluesky
When Netflix announced they were acquiring studios, this was the only outcome I ever saw for them. — Shame, but hopefully that Netflix money is enough for them to just keep the team together and start a new studio from it. [embedded post]
@pixelfish @pixelfish on bluesky
I have thoughts and my biggest ones pertain to the gap in messaging the users. The entire time I worked there, whenever I told somebody what I did, their first response was always, “Netflix has games?” — I have friends at surviving studios there so I still want them to succeed…
@cuppy Tami Lam on bluesky
Netflix saying they are doing the layoffs to focus on things like STORY while laying off their studio that focuses on narrative games...that's rich. — Also selling back Spry Fox the same year, another narrative-heavy gamemaker. What an industry. [embedded post]
@lasercannon Bryant Cannon on bluesky
It's true. After 12 outstanding years, Night School is shutting down today. I'm shocked and still processing. [embedded post]
@barleybap @barleybap on bluesky
Netflix: *buys studio best known for Oxenfree, a fairly well received game* — Studio: *develops a sequel to Oxenfree that is also well-liked* — Netflix: *shuts studio* — I don't really know what you can call that beyond rank incompetence. No idea what you're buying or what…
@lary5a @lary5a on bluesky
Back when our Studio was just starting out we had a call with Netflix, and in 2024 they said they were looking to make “Stardew Valley 2”. — Immediately knew that these suits had no idea about the game industry or what gamers wanted and I was terrified for the future of NSS. —…
@johnnycullen Johnny Cullen on bluesky
Netflix still sees gaming as an “opportunity” but shuts down one of the best narrative gaming studios in the industry in Night School? — FUCK ALL THE WAAAAAAAAAAAAAAY OFF. [embedded post]
@halophoenix Alan Henry on bluesky
I remember at Wired when @megannicolett.bsky.social covered Netflix's acquisition of Night School and we questioned Netflix's will to actually fund game development for the long term, I got a nastygram from them whining “how dare you criticise how committed we are to game studios…
@adamdolin Adam Dolin on bluesky
I was at Night School from 2022-2024, and co-sign everything Anna says. [embedded post]
@neomeruru @neomeruru on bluesky
In 2023, a friend encouraged me to apply at NSS, assuring me Netflix was hands-off with their game projects and prospects were stable. — Three years IS good prospects, esp. considering I've been laid off twice since, but it goes to show: no place is ‘safe’ when games are seen a…
@thespaceshipper.com @thespaceshipper.com on bluesky
Nooooo, not Night School!! 😭 — They deserve better. Please stop buying neat studios to close them!! — I'm a big fan of both Oxenfree adventure games, with their vibe between Stand by Me and Twilight Zone/Lost. Warmly recommended! [embedded post]
@megannicolett Megan Farokhmanesh on bluesky
Night School's Afterparty is still one of the funniest games I've ever played. this is a real shame and loss of great creative talent [embedded post]
@deswalsh Des Walsh on bluesky
Well that's a shame, I worked at night school for a time and was with some realy grate people and first time in my career I had a chance to be a small part of the art design side of a game. [embedded post]
@seeker8998 @seeker8998 on bluesky
‘Netflix says it still see games as an “opportunity”’ — I have seen suits say “mistakes were made,” but it's a rarity and it should be said more often. “Whoops, we didn't have anything concrete and business-reasonable in mind for these people to do, sorry we killed another stu…
@annacwebs Anna on bluesky
I was a Lead Writer at NSS from 2024-early 2025. There's so much I wish I could say, but all I'll say is this: the rank-and-file IC Nightschoolers were some of the most creative, passionate, innovative people I've ever had the pleasure of working with. Hire them. You won't be …
@jmrivera Joshua Rivera on bluesky
you could effectively build a publication around the studios being regularly shuttered. call it The Wake or something. Interview the brilliant devs these companies aren't interested in, cover the games that won't be followed up. Idk. — www.gamefile.news/p/netflix- cl...
r/IndieGaming r on reddit
BREAKING: Netflix Shutting Down Two Gaming Studios, Including Night School, Developer of Oxenfree
r/TwoBestFriendsPlay r on reddit
Netflix to shut down two more game studios, Oxenfree Night School and Moonloot closing, as streaming giant continues to shrink internal game studio operation
r/xbox r on reddit
BREAKING: Netflix to shut down two more game studios (Night School Studio and Moonloot) | GameFile
r/PS5 r on reddit
Netflix is shutting down two of its game studios, including Night School (Oxenfree)
r/kindafunny r on reddit
BREAKING: Netflix to shut down two more game studios - Night School and Moonloot
r/Games r on reddit
BREAKING: Netflix to shut down two more game studios
r/Layoffs r on reddit
Netflix to shut down two more game studios

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