Netflix’s gaming “secret weapon” is no more - Oxenfree studio Night School is to close
Netflix has shuttered two of its internal game development studios, Night School Studio and Moonloot Games, as the streaming giant scales back its gaming operations. Night School, best known for creating the critically acclaimed Oxenfree series and its 2023 sequel, was acquired by Netflix in 2021 when the company entered the games market. The closure comes just weeks after Night School released Unhinged, an innovative interactive narrative experience starring Zoë Kravitz and Sadie Sink that paired smartphones and TV screens for a unique gameplay experience.
Moonloot Games, founded in 2022 and based in Helsinki, had not yet released any titles but was reportedly developing an Animal Crossing-inspired game at the time of its closure. Netflix stated its intention to be “more focused in our execution” as justification for the closures, which also include job cuts across its broader games teams, though the exact number of affected employees was not disclosed.
The closures represent a significant contraction in Netflix’s gaming strategy, which launched amid considerable optimism about premium interactive experiences on the platform. Next Games is now Netflix’s sole remaining internal studio, alongside the company’s gaming team. The restructuring reflects changing leadership priorities, with Mike Verdu, who served as VP of Game Development when Netflix entered the market, transitioning to VP of Generative AI in 2024 before departing the company in March 2025.