Netflix has unexpectedly shut down its triple-A gaming studio in Southern California, just over a year after its launch. The closure has led to the departure of high-profile developers, including Chacko Sonn, former Overwatch executive producer, and Joseph Staten, the creative mind behind Halo. The news has sparked widespread speculation about Netflix’s future gaming strategy.
Game File first reported the closure, noting the exits of Sonn, Staten, and art director Rafael Grassetti, who had previously worked at Sony Santa Monica on God of War. Staten, who joined Netflix in April last year, had ambitious plans to create a new AAA multiplatform game and an original IP. His departure is particularly surprising, considering his experience in the gaming industry.
At the time of his hiring, Staten expressed excitement about building immersive worlds with iconic characters for Netflix Games. However, his departure signals a shift in Netflix’s gaming approach.
A Change in Netflix’s Gaming Strategy?
While Netflix has not disclosed why the studio was shut down, this move suggests a pivot from its initial gaming ambitions. The company has primarily focused on mobile gaming, offering over 100 titles tied to popular Netflix series and films, such as Emily in Paris, Too Hot to Handle, and Virgin River. In addition, the gaming catalog includes external titles like The Grand Theft Auto Trilogy and Hades, available to all Netflix members without ads or extra fees.
The gaming division, led by former Epic Games executive Alain Tascan, has been working to expand Netflix’s gaming portfolio, with over 80 games currently in development. Despite this, gaming remains a small part of Netflix’s overall business.
Earlier this year, Netflix claimed its gaming engagement had tripled following the launch of The Grand Theft Auto Trilogy, calling it the platform’s “most successful” game launch. However, during a recent financial call, Netflix co-CEO Greg Peters admitted that gaming engagement is still relatively small compared to the company’s core film and series offerings.
Peters emphasized that Netflix is continuing to refine its gaming strategy, particularly by focusing on games tied to its original IP. He also noted that interactive narrative games, like those found in the Netflix Stories app, have shown the most promise.
As Netflix shuts down its AAA gaming studio, questions arise about whether the company will pursue large-scale gaming projects in the future. Although Netflix had ambitious goals for expanding into gaming, the future of this endeavor remains uncertain after this major studio closure.
