California-based streaming giant Netflix made a surprising entry into the gaming market late in 2021. What started out as a simple way to play a handful of titles on the go has since transformed into a 120-plus-game catalogue with support for gaming via web browsers on laptops and PCs, as well as on compatible TVs.
Netflix is still betting on games, but its strategy seems to be changing.
After previously shutting down studios such as Team Blue and Boss Fight Entertainment, Netflix is once again cutting down on its in-house game studios. But that doesn’t mean the streaming giant will ditch gaming. Instead, Netflix wants to prioritize “kids gaming, party games, story-driven fare and games with mainstream hooks.”
The strategy comes with some cuts
That change in focus, unfortunately for studios like Night School Studio and Moonloot, is coming in the form of closures and job cuts, as first reported by Game File.
For reference, Night School Studio released Unhinged, a unique horror-thriller for Netflix TV users back in June. It’s also the studio behind Oxenfree.
Helsinki-based Moonloot, on the other hand, appears to have no official releases.
In a statement given to Game File, the streaming giant reiterated that the studio closures are about narrowing its focus rather than cutting down on gaming altogether.
“We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” said a Netflix spokesperson.
In addition to the studio closures, Netflix is also seemingly cutting jobs from its “internal games team.” The streaming giant didn’t share any relevant details about the roles eliminated, though now-former Netflix Games’ accessibility employee, Tara Voelker, indicated that they were affected. “Yes, I was impacted by the Netflix layoffs even though I was the single accessibility person in gaming,” they wrote.
For what it’s worth, the streaming giant still has its internal gaming studio that works alongside external developers, complete with its first-party studio Next Games. Expect the company to keep working on (and adding) new titles, albeit with a greater emphasis on kids, party, and story-driven titles with wider appeal. With the change in focus, it wouldn’t be surprising to learn that the closures could make way for other acquisitions that better fit Netflix’s gaming vision.
Source: Game File
