Netflix, known for its wide catalog of audiovisual productions, took an important step in 2021 by entering the video game market. However, the closure of its AAA game studio, located in California, indicates that the company may be reviewing its plans in this segment.
Stephen Totilo, journalist and specialist in the games industry, released the information and revealed the end of Team Blue, as the studio is known internally. Industry veterans made up the team, responsible for developing a high-budget and completely original game, which is now discontinued.
Dismissal of game industry veterans
Among the professionals dismissed are big names, such as Chacko Sonn, former executive producer of Overwatch , Joseph Staten, former creative director of Halo , and Rafael Grassetti, former art director of God of War . They had been hired by Netflix in 2023, but did not complete the project announced at the beginning of their hiring.
Joseph Staten declared when announced as creative director of Netflix's multiplatform game: “There is nothing I love more than collaborating to build worlds full of iconic characters, deep mysteries and endless adventures” . However, Netflix interrupted the dream of creating a AAA title before it came to fruition.
Changes in Netflix's strategy in the games market
Although Netflix has not yet issued an official statement regarding the studio's closure, the decision may be linked to the company's reassessment of its role in the video game sector. In recent years, Netflix has invested in experienced developers and expanded its games division, but the results appear to have fallen short of expectations.
Netflix Games, launched as an extension of the streaming service, offers more than 100 titles to subscribers at no additional cost. Developers base most of the games on the platform's successful series, such as Emily in Paris, Squid Game and Too Hot to Handle. However, users have little use for the service.
Low demand for games on Netflix Games
According to a study carried out by Apptopia, only 1% of Netflix subscribers regularly access available games. However, although Netflix has stated that this low adoption does not deviate from its initial projections, the closure of the AAA studio raises questions about the company's future in the games market.
With the end of Team Blue, Netflix appears to be rethinking its strategy in this competitive sector. Despite this, Netflix Games' current catalog remains accessible, and the company continues to release new titles, albeit without the ambition to create big-budget, impactful games.
Uncertain future for Netflix's gaming division
The closure of Netflix's AAA studio marks a possible redirection of its efforts. The company can focus on partnerships and its current portfolio of casual titles, which take inspiration from its audiovisual productions, rather than producing a large-scale original game.
While Netflix hasn't dominated the gaming market as it planned, its subscriber base and global reach are still huge assets for future forays into the sector. It remains to be seen whether the company will look for new ways to explore the world of games or whether it will concentrate its resources on its traditional areas of activity.
