(Credit: Mario Tama / Getty Images News via Getty Images)
Netflix is shutting down its internal games team known as "Blue" formed in late 2022, according to a report from Game File.
The team was focused on developing "AAA" games under former Blizzard executive Chacko Sonny, who worked on the multiplayer sci-fi shooter Overwatch and left Blizzard for Netflix. AAA games are typically considered games with high budgets that can be over $80 million per game.
Sonny, as well as former Halo creative lead Joseph Staten and ex-Sony art director Rafael Grassetti, are now no longer working for Netflix and the Blue studio has been shut down, the company has confirmed. Just four months ago, Blue was looking to hire engineers, according to LinkedIn posts shared by then-Blue staff.
High budgets can result in top-tier games with elegant graphics. But it can also be a big risk for fledgling studios. AAA games can take from five to seven years to make. Such projects are long-term investments that won't bring quick profits—and could result in big losses.
The company isn't giving up on games entirely, though. Reached for comment, a Netflix representative tells PCMag via email that it still has a long-term commitment to games more broadly.
But Netflix hasn't been spending like it used to. It substantially pulled back on funding projects last year, spending 32% less on new content in 2023 than the year before.
The streaming giant started its gaming push in 2021. It's given Netflix subscribers free access to games like the romance story game Too Hot to Handle and older mobile editions of Grand Theft Auto. It also acquired Night School Studio, Boss Fight, and Next Games to create new games.
But Netflix's gaming gamble, while still in its early stages, may not be doing so well despite now-monthly releases. Data from late last year indicates that less than 1% of all Netflix subscribers actually play its games on a daily basis.
At time of writing, Netflix has over 80 mobile games tied to its platform. It also lets users play some of its games on their TVs, using an iPhone as a controller.
Editor's Note: This story has been updated to include comment from Netflix.