Netflix has hit a setback in its venture into gaming with the closure of its Southern California-based studio, Team Blue. First reported by Game File and later confirmed by Netflix, this studio was part of the company’s larger strategy to break into the gaming industry, which began in 2021. Team Blue was one of several studios Netflix established, and it was focused on developing a high-budget, multi-platform game. Despite the potential, the studio has been shut down before it could release its first game.

Team Blue was formed in 2023 and quickly gained attention due to its leadership and talent pool. Chacko Sonny, a former executive producer on Overwatch, was brought in to head the studio. The team included industry veterans like Joseph Staten, a creative lead on Halo, and Rafael Grassetti, the art director for God of War. This group of seasoned professionals suggested that Netflix was striving for an ambitious project, with an original AAA game intended for multiple platforms. However, before the project could be officially announced or released, the studio was closed down.

Since launching Netflix Games in 2021, the company has grown its portfolio to include over 100 mobile titles. These include mobile ports of popular games such as Grand Theft Auto and Hades, as well as games based on Netflix’s own IP, including Emily in Paris, Outer Banks, and Squid Game. Netflix’s approach to gaming has largely focused on mobile platforms, which may explain the decision to step back from console and PC development, areas that Team Blue was exploring.

While Team Blue’s closure may signal a shift in Netflix’s gaming strategy, the company continues to grow in other areas. Netflix has acquired several game studios, including Night School Studio, Next Games, and Spry Fox, to further its mobile game development. The company is still releasing new games monthly, primarily targeting mobile users with games based on its own shows and franchises.

Netflix’s expansion into gaming has been rapid, but the decision to close Team Blue indicates that producing high-budget, cross-platform games may not align with the company’s current focus. Despite this, Netflix’s mobile gaming offerings remain intact, and the company continues to develop and release new titles for its growing subscriber base. Although Team Blue’s original AAA project will never come to fruition, Netflix remains active in the mobile gaming sector, using its own IPs to attract players.