Netflix has invested significant efforts in recent years to strengthen its presence in the video game industry, although it appears that the results have not been as expected. According to Stephen Totilo, the streaming service has discontinued the studio established in 2022 dedicated to AAA game development, which had experienced professionals from Halo, Overwatch, and God of War.
The studio, referred to internally as Team Blue, did not officially reveal what its project would be, but it represented a significant bet by Netflix in the gaming area. Initially, it was suggested that they would focus on a prominent PC game, but later it was understood that they would develop a multi-platform proposal based on an original intellectual property.
Originally, Netflix’s approach to gaming was exclusively focused on mobile titles. However, it quickly became apparent that these offerings were not popular among users. The company doubled its efforts with multiple studio purchases and games and then started creating its own team dedicated to high-profile proposals.
The prestigious Chacko Sonny, previously executive producer of Overwatch at Blizzard, was one of the first to join Team Blue. He was followed by Joseph Staten, former creative director of Halo Infinite, who joined Netflix Games in the first half of 2023 as creative director of the company’s first AAA game.
Shortly after, Netflix added Raf Grassetti, one of the most recognized directors of art in the sector. He arrived with a distinguished track record in Santa Monica Studio, playing a crucial role in the redesign of the God of War saga, as well as in the comic book and design fields.
Netflix closes its AAA game development studio
It is still unclear why Netflix decided to suspend the development of its first AAA game and dissolve the responsible studio. There have been no official announcements, but everything indicates that the project was definitely canceled without plans to be revitalized in the short term. This is reinforced by the fact that figures like Sonny, Staten, and Grassetti have not been reassigned within the company, but have left it.
Since the launch of its first games in 2021, Netflix has revealed ambitious plans in this area. It mentioned its intention to create a service similar to Game Pass and explore the possibilities of cloud gaming, an initiative that began to be tested in a limited way in 2023. Despite these efforts, progress has been moderate.
Regarding games, the platform’s strategy initially focused on mobile titles, gradually expanding to other formats. For example, at the end of last year, it included in its catalog the remastered trilogy of Grand Theft Auto.
At the beginning of this year, reports from The Wall Street Journal indicated that Netflix was exploring ways to monetize its games. Specifically, it considered two alternatives: incorporating ads or adding microtransactions, which generated controversy given that the original promise of the company was not to include advertising or purchases within the application.
This 2024, the video game industry faces significant challenges, with layoffs and studio closures affecting major names like Xbox, PlayStation, Tencent, Take-Two, and Riot Games. According to Game Industry Layoffs, 13,000 workers in the sector have lost their jobs this year.
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