This is yet another piece of bad news for the video game industry. Netflix has decided to close two of its studios, which it had acquired only recently.

Night School Studio, which was acquired in 2021 and is known for Oxenfree, will be shut down. The developer had, however, launched Unhinged, a 30-minute horror FPS game, on June 30. Moonloot, founded in 2022 in Finland, faces the same fate.

Netflix has stated that it intends to focus on games aimed at a young audience, as well as board games, narrative content, and mainstream titles like FIFA. A spokesperson spoke to the website Game File.

"We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities.

We are incredibly grateful to the talented colleagues we’re saying goodbye to today. We thank them for all their contributions to Netflix, and wish them the best."