In a surprising move, Netflix has closed down its internal AAA game studio, codenamed ‘Blue’. This studio, comprised of seasoned veterans from the video game industry, was never formally unveiled, and its projects remained shrouded in secrecy. The closure, reported by Game File, occurred earlier this month, marking the end of an ambitious endeavor for the streaming giant.
While Blue was one of several internal studios working on new titles for Netflix, it stood out due to its high-profile hires. Over the past few years, the studio attracted key personnel, including Chacko Sonny, a former executive producer on Overwatch who left Blizzard in 2021, and Rafael Grassetti, the former art director of God of War. In 2023, Joseph Staten, known for his work on Halo games at Bungie and 343 Industries, joined the team. Staten’s X (formerly Twitter) account hinted that Blue was developing an “original IP,” adding another layer of intrigue to the studio’s plans.
While Netflix never officially confirmed the studio’s existence or its projects, some clues surfaced. In November 2022, MobileGamer.biz discovered job listings mentioning Netflix’s development of “a brand-new AAA PC game,” indicating a potential shift towards multi-platform game development. This move would have been a departure for Netflix, which had primarily focused on mobile games.
The closure of Blue comes as a surprise, especially considering the caliber of its leadership team. While none of the executives have publicly commented on the shutdown, Grassetti’s cryptic popcorn GIF on social media has fueled speculation about the sudden closure. According to Game File, all three executives are no longer employed by Netflix.
Despite the closure of Blue, Netflix still maintains four internal studios working on various game projects. These include Oxenfree developer Night School Studio, mobile game developer Next Games, Boss Fight Entertainment, and a studio established in Helsinki in 2022. Additionally, Netflix offers a selection of third-party games on its platform, accessible to subscribers. This selection includes titles like Grand Theft Auto: San Andreas, Spiritfarer, Into the Breach, and Shovel Knight Pocket Dungeon.
The closure of Blue raises questions about Netflix’s long-term gaming ambitions. While the company continues to invest in game development, the closure of a high-profile studio with such an impressive team suggests a shift in strategy or perhaps a recognition of the challenges inherent in the AAA game market.