Netflix is closing Night School Studio, the developer behind Oxenfree and Afterparty, five years after acquiring the team. The streaming giant is also shuttering Moonloot, an internal developer that had yet to release a title.
The decision follows the release of Unhinged, Night School’s latest Netflix-exclusive title, which launched six weeks prior to the closure announcement. In a statement provided to Game File, a Netflix spokesperson cited a need for "more focused" execution, noting that organizational changes were being made to match new company priorities.
Impact on Internal Teams and Projects
The closures extend to Netflix’s broader internal games division, where an unspecified number of staff members are being laid off. Among those affected is the company's only dedicated games accessibility staffer.
Moonloot, which had not released a game under Netflix's ownership, was reportedly working on an Animal Crossing-style project. That game will no longer proceed following the studio's closure.
Netflix's Ongoing Strategy
Despite the shuttering of multiple studios—including a team previously led by developers from the Call of Duty and Halo franchises—a Netflix representative maintained that gaming remains a focus for the company. The spokesperson noted that games are still viewed as an opportunity to expand the variety of entertainment offered to Netflix members.
While the company continues to frame gaming as a core pillar of its service, the recent closures represent a consolidation of their internal development efforts. As of now, the specific impact on the long-term support for existing titles remains unconfirmed beyond the stated closure of the studios.