Netflix preparing to shut down Night School and Moonloot

• The company is also cutting jobs from its internal games team, though the number of affected roles was not disclosed.
• Netflix has shifted from a mobile-first gaming strategy towards games streamed on TVs and PCs.
• The latest closures follow Netflix’s shutdown of Team Blue and Boss Fight and the sale of Spry Fox.

Netflix has revealed plans to further reduce its number of internal game studios by closing Los Angeles-based Night School and Helsinki-based Moonloot.

As reported by GameFile, the streaming giant attributed the closures to a shift in priorities towards kids' games, party games, story-driven titles and games with mainstream appeal, including its recently released FIFA title. 

Night School, which Netflix acquired in 2021, released Unhinged, a 30-minute first-person horror game, just six weeks ago. The game was praised by Netflix co-CEO Greg Peters during an investor call, where he cited “really solid numbers”. The studio is now set to close. 

Moonloot, meanwhile, was founded in Helsinki in 2022.

“We see an opportunity to be more focused in our execution, so we are making organisational changes to the business to match those priorities,” said a Netflix spokesperson. 

Strategic shift

The company is also cutting jobs from its internal games team, although Netflix declined to disclose how many positions are affected.

“We are incredibly grateful to the talented colleagues we’re saying goodbye to today. We thank them for all their contributions to Netflix and wish them the best,” said the spokesperson. 

The closures follow several changes to Netflix’s games strategy. The company previously shut down Team Blue in 2024 and Boss Fight last October, while cosy game studio Spry Fox was sold back to its founders in December.

Netflix has shifted from its initial focus on mobile games towards cloud games on TVs and PCs, with phones used as controllers. The company said games remain an opportunity to expand the variety of entertainment available to its members.