Netflix has unexpectedly shutdown its triple-A gaming studio based in Southern California. The sudden news has sparked major questions from the entertainment giant, as resources claim that even high profile developers have also left the company.
Initially, Netflix was planning to invest in high-budget games that could be played on various devices and expanding its mobile gaming. However, this plan now seems uncertain. In a July financial call, co-CEO and president of Netflix Greg Peters described games as a “huge market” for Netflix and without advertisement revenue, it is generating “almost $150 billion, excluding China and Russia.”
Furthermore, the departure of prominent developers from Call of Duty, God of War, Halo, and Overwatch has prompted inquiries regarding Netflix’s management.
Netflix’s gaming division, which included former Overwatch executive producer Chacko Sonn and Halo creative director Joseph Staten, has disbanded. As a result, Sonn, Staten, and art director Rafael Grassetti (who previously worked on God of War at Sony Santa Monica) have all departed from the company after joining in spring 2023.
Currently, there are almost 100 games available from Netflix including popular games like GTA 3, GTA: Vice City, GTA: San Andreas and Football Manager Mobile 2024. Spin-off games from its successful series such as Money Heist, Narcos and Too Hot to Handle are also there.
In July, Greg peter also shared, “We’re looking good in our engagement growth in 2024, and we’ve set even more aggressive growth goals for 2025 and 2026.”
He added, “We’re getting close to three years into our gaming initiative, and we’re happy with the progress that we’ve seen.”
With all these positive plans, the sudden shutdown of the AAA studios is still a huge shock overall. Netflix hasn’t revealed the reasons behind the studio’s closure, but as reported by Game File, it suggests a shift in the company’s strategy for its video game initiatives.
