Netflix has closed its AAA gaming studio

Netflix’s gaming arm is best known for its indie and mobile titles, but the company recently made a push into AAA by hiring execs from high-profile franchises like Halo, Overwatch and God of War. That strategy may be coming to an end, though, as Netflix is shutting down its AAA studio known as Team Blue, the company confirmed to Game File.

In 2022, Netflix brought on former Overwatch boss Chacko Sonny to head up a new SoCal-based AAA studio. A year later, former Halo exec Joseph Staten was hired on as Creative Director, followed by God of War art director Rafael Grassetti. At the time, both Staten said he was working on a multi-platform AAA game with all-new IP.

Those executives are no longer with the company and Netflix confirmed to Game File that Team Blue has been shut down. Engadget reached out to Staten and Grassetti for comment.

Netflix got into gaming in 2017 with its retro-inspired Stranger Things mobile game. In the following years, its strategy was primarily centered around obtaining mobile publishing rights to respected indie titles like Into the Breach and Terra Nil. It also built a number of mobile games in-house. In 2023, Netflix had nearly 90 such titles in development with in-house and partner studios.

Those can be accessed through Netflix’s app and played directly on your device, so they fit in pretty well with its overall streaming strategy. The Team Blue studio venture didn’t quite line up as neatly with that model, though, which made it a bit of a surprise. As Engadget’s Igor Bonifacic noted at the time, “funding the development of a multiplatform AAA game is significantly more ambitious and, it should be noted, risky.”