Back in 2022, Netflix announced the opening of a new AAA studio and the development of a AAA game. In 2023, former Microsoft and Halo veteran Joseph Staten joined Netflix as the Creative Director of the project. However, that project and the studio, known internally as Team “Blue” is no longer moving forward as the studio has reportedly been shut down.

SCOOP: Netflix has closed its “AAA” game studio in California, less than 2 years after opening it and making big hires

Last spring, Halo vet Joseph Staten made headlines for joining

Team’s now gone

A shake-up as new gaming bosses at Netflix settle inhttps://t.co/li3Pncqsy0

— Stephen Totilo (@stephentotilo) October 22, 2024

Game File reported that the studio no longer exists. The studio launched back in 2022 with former Overwatch Executive Producer Chacko Sonny in charge. Staten joined Netflix in April 2023. In May 2023, former Sony Santa Monica Studio Art Director Raf Grassetti who previously worked on the God of War series joined the studio.

“In my work life, there’s nothing I love more than collaborating with others to build worlds filled with iconic characters, deep mysteries, and endless adventures,” Staten said at the time. “So today, I’m thrilled to announce that I’ve joined Netflix Games as Creative Director for a brand-new AAA multiplatform game and original IP.”

Game File reports that “early hints about the team’s work suggested it was pursuing a big-budget multi-device strategy, signifying the ambitious edge of Netflix’s initial mobile-focused expansion.”

According to the report, all three have now departed Netflix and the studio has been closed.

Stephen Totilo says that the shakeup could be due to the new gaming bosses at Netflix.

Story has more context. Definitely a sign of new leaders pulling back from one big bet, but Netflix still has a bunch more studios and execs seem hyped on growth targets and show tie-in games

— Stephen Totilo (@stephentotilo) October 22, 2024

In a recent financial call, co-CEO Greg Peters talked about what’s been working with Netflix Games.

“We’ve seen what works, what doesn’t work,” Peters said. “We’re refining our program to do more of what is working with the 80-plus games that we currently have in development and one of those things that really is working is connecting our members with games based on specific Netflix IP that they love.

“And this is an area that we’ve been able to move in quickly in a particular space, which is interactive narrative games. These are easier to build and we place those in a narrative hub that we call Netflix Stories.”