Netflix Closes Night School Studio Despite Strong Launch of Unhinged
Netflix has shut down its Los Angeles-based game studio Night School, known for the Oxenfree series. Staff members have spoken out following the closure, which occurred after the launch of the studio's latest title, Unhinged. The decision came despite the game being described as a top-tier release.
The shutdown also encompasses Moonloot, a Finnish studio that had yet to release a game. Netflix describes these layoffs as a move to concentrate its gaming resources, following the earlier closures of Team Blue and Boss Fight Entertainment.
Executives still point to Unhinged's strong debut as a highlight, with a departing developer noting its release to millions of players. Leadership maintains that gaming remains a minor but growing part of their overall entertainment spending.
The closure of a studio right after a well-received launch could indicate that corporate restructuring often overrides creative success. Developers may face heightened job instability, while players could see a reduction in distinctive, story-driven games as platforms prioritize broader market appeal. This pattern may also accelerate talent consolidation, potentially limiting the diversity of risks taken in the industry.