Netflix Closes Night School, Moonloot Studios in Restructuring

Netflix is shutting down two of its video game development studios, Night School Studio and Moonloot Games, as part of a restructuring to focus on kids games, party games, and titles with mainstream appeal. The closures, announced on August 13, 2026, were accompanied by layoffs within the company's internal games team, though Netflix did not disclose the number of positions affected.

The decision comes just six weeks after Night School released its latest game, Unhinged, a short first-person horror title designed to stream on Netflix. The timing is notable because Netflix co-CEO Gregory Peters had praised Unhinged and the FIFA World Cup Launch Edition game during the company's second-quarter earnings call on July 16, 2026, calling them the company's "two most successful cloud game debuts."

Night School Studio, based in Los Angeles, was the first game studio Netflix acquired in September 2021. The studio was best known for the award-winning supernatural adventure Oxenfree, released in 2016, and its 2023 sequel, Oxenfree II: Lost Signals. Under Netflix, it also developed a mobile game tied to an episode of Black Mirror. Moonloot Games was a smaller, Helsinki-based studio founded...