Netflix, known for its extensive catalog of audiovisual productions, took a significant step in 2021 by entering the video game market. However, the closure of its AAA game studio in California indicates that the company may be revising its plans in this segment.
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Stephen Totilo, a journalist and gaming industry expert, released the information and revealed the end of Team Blue, as the studio is known internally. Industry veterans comprised the team, responsible for developing a high-budget, entirely original game, which has now been discontinued.
Layoffs of gaming industry veterans
Among the professionals who were let go are notable 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 upon being announced as creative director of Netflix's multiplatform game: "There's nothing I love more than collaborating to build worlds filled with iconic characters, deep mysteries, and endless adventures ." However, Netflix cut short his dream of creating a AAA title before it could come to fruition.
Changes in Netflix's strategy in the gaming market
Although Netflix has not yet issued an official statement regarding the studio's closure, the decision may be linked to a reassessment of the company's performance in the video game industry. In recent years, Netflix has invested in experienced developers and expanded its gaming division, but the results appear to have fallen short of expectations.
Netflix Games, launched as an extension of the streaming service, offers over 100 titles to subscribers at no additional cost. Developers base most of the games on hit series on the platform, such as Emily in Paris, Squid Game, and Too Hot to Handle. However, users have found little adoption of the service.
Low demand for games on Netflix Games
According to a study by Apptopia, only 1% of Netflix subscribers regularly access available games. However, while Netflix has stated that this low adoption rate is not beyond its initial projections, the closure of the AAA studio raises questions about the company's future in the gaming market.
With the demise 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, high-impact games.
Uncertain future for Netflix's gaming division
The closure of Netflix's AAA studio marks a potential redirection of its efforts. The company may focus on partnerships and its current portfolio of casual titles, which draw inspiration from its audiovisual productions, rather than producing a large-scale original game.
While Netflix hasn't dominated the gaming market as planned, its subscriber base and global reach remain significant assets for future forays into the sector. It remains to be seen whether the company will seek new ways to explore the gaming universe or focus its resources on its traditional areas of expertise.
