Netflix shuts down AAA gaming studio. Shift of strategy?
Netflix has confirmed the closure of its AAA gaming studio, Team Blue. The decision marks a major shift in the company's strategy, which had recently ventured into AAA gaming by hiring top executives from renowned franchises such as Halo, Overwatch, and God of War. The news was first reported by Game File and later confirmed by Netflix.
High-profile hires and departures
In 2022, Netflix hired former Overwatch chief Chacko Sonny to head a new AAA studio in Southern California. This was followed by the hiring of ex-Halo executive Joseph Staten as Creative Director and God of War art director Rafael Grassetti. Staten had previously announced his involvement in a multi-platform AAA game with an entirely new IP. However, these executives are no longer with Netflix after Team Blue's closure.
Netflix's gaming journey
Netflix first dipped its toes into the gaming industry in 2017 with a retro-themed Stranger Things mobile game. Over the years, the company's strategy mainly revolved around acquiring mobile publishing rights for popular indie titles such as Into the Breach and Terra Nil. It also created a few mobile games in-house. By 2023, Netflix had nearly 90 such titles in the works with in-house and partner studios.
Team Blue's closure: A deviation from Netflix's strategy
The games developed by Netflix could be played directly on devices through its app, fitting perfectly into the company's overall streaming strategy. However, the Team Blue studio venture didn't fit so perfectly into this model. As Igor Bonifacic of Engadget pointed out, "Funding the development of a multiplatform AAA game is significantly more ambitious and risky." Team Blue's closure hints at a possible strategic shift for Netflix in gaming.
