Netflix Inc. (NFLX) has made a surprising move, shutting down its Southern California AAA game studio, Team Blue, less than a year after its formation. This closure signifies a significant shift in the company’s gaming ambitions, especially after a period of aggressive expansion into the gaming market.
The closure of Team Blue comes as a surprise, particularly considering the high-profile individuals who were brought on board to spearhead a major project. Chacko Sonny, a gaming industry veteran and former executive producer on Overwatch, was hired in October 2022 to lead the studio. He was followed by Joseph Staten, known for his work on Halo, who joined in April 2023 to develop a new AAA intellectual property (IP). Rounding out the leadership team was Rafael Grassetti, the art director on God of War, who joined in May 2023 to contribute to the same project.
According to reports by Game File, Team Blue was working on a “big-budget multi-device strategy,” although specifics about the game were never publicly released. The studio’s closure has left the fate of this ambitious project uncertain.
The closure of Team Blue coincides with broader changes within Netflix’s gaming division. Just last week, Netflix Games President Alain Tascan announced the hiring of Jeet Shroff, a former vice president of games development at Epic Games, as vice president of games tech and portfolio development. Shroff’s hiring was part of a restructuring effort that also involved layoffs impacting 35 employees across the company’s gaming division, as reported by Business Insider.
This recent series of events suggests that Netflix is taking a more measured approach to its gaming ambitions. The closure of Team Blue, combined with the restructuring of its gaming division, indicates a possible reevaluation of its strategy and a shift in focus. While Netflix has already seen significant success in attracting users to its gaming offerings, the company is seemingly taking a step back to re-evaluate its long-term goals in the gaming space.