Netflix reportedly shuts down ‘AAA’ game studio with ex-Overwatch & Halo devs

Netflix has reportedly shut down one of its video game studios that was led by former devs from Blizzard, Halo, and Sony after just two years, despite plans to create big-budget productions to challenge some of the behemoths of the industry.

In late 2022, Netflix hired Overwatch executive producer Chacko Sonny to help build the studio in Southern California.

Joining him was Halo creative lead Joseph Staten, who had worked with Bungie and 343 Industries on Halo, closely followed by Sony Santa Monica art director Rafael Grassetti, who had been God of War’s overall art director prior to his move to Netflix.

At the time, Staten said that he had “joined Netflix Games as Creative Director for a brand-new AAA multiplatform game and original IP,” showing a clear ambition from the streaming platform to go big on their new venture.

On October 22, Game File reported that that studio – referred to as ‘Team Blue’ – has now been shut down, with a company representative confirming none of those developers remained employed at Netflix.

Netflix still hosts a number of games and has seemingly continued its push in mobile. For example, it remains the exclusive provider of Football Manager 24 Mobile, a simulation game developed by Sports Interactive where players can take over their favorite soccer teams as head coach and bring them to glory.

The platform also hosts mobile versions of old Grand Theft Auto games, Sonic Mania Plus, various Stranger Things games, and more.

Whether this studio shut down is an indicator of the future direction of Netflix’s gaming plans remains to be seen. At the time of writing, there have been no details on what the original IP Netflix was developing looked like.