Netflix is shutting down Night School Studio, the first game studio it acquired in 2021, according to a report. The studio behind Oxenfree and the recently released smartphone-controlled horror game Unhinged will close. Netflix also plans to shut down its Helsinki studio Moonloot Games and cut an undisclosed number of jobs from its in-house games team. The moves are part of a shift toward kids gaming, party games, and mainstream titles like FIFA World Cup: Launch Edition.

Just weeks ago, Netflix co-CEO Gregory Peters praised Unhinged and FIFA World Cup during the Q2 2026 earnings call, calling them “really solid numbers” and “top tier of game performance.” Night School co-founders Sean Krankel and Adam Hines had expressed optimism about the acquisition in 2023, citing Netflix’s promise of creative autonomy. But after hiring former Epic Games executive Alain Tascan in 2024, Netflix began dismantling its studio network.

With this closure, Netflix has now shut down or sold all but one of its studios. The sole survivors are Helsinki-based Next Games and Netflix Games Studio, which focus on couch experiences and external developer deals. Spry Fox, another acquired studio, managed to buy itself back.