Netflix Closes Oxenfree Developer Night School Studio and Moonloot

In a statement, Netflix emphasized that it continues to build solid foundations in its focus areas, including kids' games, party games, narrative experiences, and mainstream titles. However, the company decided to eliminate additional roles to align with these priorities. The representative declined to share specific details on how many employees were affected.

Night School Studio released the horror game Unhinged in late June, just weeks before its closure. The title is designed for play on a browser or television, using a personal smartphone as a controller. Notable voice actors include Zoë Kravitz, Sadie Sink, and Troy Baker. Netflix acquired Night School Studio in 2021 shortly after the release of Oxenfree 2: Lost Signals. The studio previously released the award-winning Oxenfree in 2016.

Moonloot Games, which was spun up internally at Netflix in 2022, did not have any announced projects at the time of the closure. Reports suggested the team was working on a game similar to Animal Crossing.

This move is part of a broader strategy shift for Netflix, moving away from its initial focus on mobile games toward casual and party titles designed for television play. The streaming service has previously shut down several acquired studios, including Team Blue, Boss Fight Entertainment, and Spry Fox. In August alone, layoffs were also reported at CD Projekt Red, Supermassive Games, and Refactor Games.