Netflix Shuts Down Night School Studio and Moonloot Games
The closures signal Netflix's game strategy is narrowing to mass-market, living-room-friendly titles, leaving only a central team and Next Games in its studio portfolio.
Key Facts
- Netflix is closing Night School Studio and Moonloot Games, as reported by Game File and confirmed by a Netflix spokesperson.
- Night School Studio, developer of Oxenfree, was acquired by Netflix in 2021.
- Moonloot Games, based in Helsinki, was founded by Netflix in 2022.
- Night School Studio released the horror game Unhinged in July 2026, which co-CEO Greg Peters praised in an investor call.
- Netflix's game division will retain only a central team and Next Games after the closures.
Reporting from 5 sources: Automaton, GameBusiness.jp, Inside, Game Spark, and 1 more.
Netflix is closing two of its in-house game studios, Night School Studio and Moonloot Games, according to a report from Game File that the company's spokesperson confirmed. Night School Studio, known for the adventure game Oxenfree, was acquired by Netflix in 2021. Moonloot Games, based in Helsinki, was founded in 2022 as an internal studio. The closures come shortly after Night School released the horror game Unhinged in July, which Netflix co-CEO Greg Peters praised in an investor call as having strong numbers. Netflix told Game File that it is prioritizing games with broad appeal, such as children's games, party games, story-driven titles, and sports games like FIFA World Cup Launch Edition. A spokesperson said the company is making organizational changes to focus its operations and thanked departing staff. These closures follow a pattern of contraction in Netflix's game division, including the shutdown of Team Blue in October 2024, Boss Fight in October 2025, and the spin-off of Spry Fox in December 2025. After these moves, Netflix's game unit will consist of a central team working with external developers and Next Games, which focuses on party games.
Netflix's decision to close Night School Studio and Moonloot Games continues a contraction that began in 2024. The company shut down Team Blue, a studio staffed by former Call of Duty and Halo developers, in October 2024. In October 2025 it closed Boss Fight, which had developed the Squid Game mobile game, and in December 2025 it spun off Spry Fox.
Night School Studio had been working on Oxenfree sequels and a Black Mirror mobile game after its acquisition. Its latest release, Unhinged, launched in July and uses a control scheme where players use their smartphone as a controller while the game streams to a PC or TV. That approach reflects Netflix's shift from mobile-only games to streaming games across devices.
Game File reported that after these closures, Netflix's game division will retain only a central team that collaborates with external developers and Next Games, which produces party games. Netflix's spokesperson told Game File that the company sees opportunities to focus its operations and is adjusting its organization accordingly, while expressing gratitude to departing employees.
Synthesized by Yomimono from the 5 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.