Netflix Shuts Down Oxenfree Developer Night School Studio

Aug 13, 2026

Netflix is closing Night School Studio, the acclaimed developer behind Oxenfree, alongside Moonloot Games as the streaming giant continues to restructure its video game business.

Netflix is making another significant change to its gaming operation, confirming that it will shut down Night School Studio and Moonloot Games while also eliminating additional roles across its Games division.

The closure is particularly notable for Night School Studio, the Los Angeles-based developer best known for the supernatural narrative adventure Oxenfree. Netflix acquired the studio in 2021, making Night School the streaming company’s first game studio acquisition.

The decision also comes just weeks after Night School released its latest project, Unhinged, making the studio’s closure an especially abrupt end to its time under Netflix.

Night School Studio Is Closing Five Years After Netflix Acquisition

Night School Studio was founded in 2014 by Sean Krankel and Adam Hines and established its reputation with the release of Oxenfree in 2016.

The narrative-driven supernatural adventure became closely associated with the studio thanks to its distinctive dialogue system, atmospheric presentation and focus on player choice.

Netflix acquired Night School in September 2021 as part of its then-growing push into video games. At the time, Netflix described the developer’s storytelling capabilities and creative track record as important additions to its emerging gaming business.

Following the acquisition, Night School released Oxenfree II: Lost Signals in 2023. The sequel launched across Netflix mobile, PC, PlayStation and Nintendo Switch, continuing the supernatural story established by the original game.

The studio subsequently developed Thronglets, a game connected to the Black Mirror episode “Plaything,” before releasing Unhinged on June 30, 2026.

That means Night School is being closed only around six weeks after the release of its latest project.

Netflix Recently Praised Unhinged

The timing becomes even more surprising considering Netflix had recently spoken positively about Unhinged.

According to reporting surrounding the closure, Netflix co-CEO Greg Peters recently highlighted the game’s performance, with Unhinged reportedly producing one of Netflix’s more successful cloud-game debuts.

Despite that apparent success, Netflix has now decided to close the studio responsible for it.

Netflix told Game File that it sees an opportunity to become more focused in how it executes its gaming strategy and is reorganizing the business around those priorities.

The company has nevertheless indicated that it still sees video games as an opportunity.

Moonloot Games Is Also Being Shut Down

Night School isn’t the only developer affected by Netflix’s latest restructuring.

Netflix is also closing Moonloot Games, a Helsinki-based studio established in 2022. Unlike Night School, Moonloot had not yet released a game before the decision to close the studio.

Additional positions elsewhere within Netflix’s gaming organization are also being eliminated as the company attempts to streamline the division.

The moves continue a broader restructuring of Netflix’s internal game-development ambitions.

Netflix’s Gaming Strategy Continues to Change

Netflix officially began adding mobile games to its subscription service in 2021, initially positioning gaming as another form of entertainment that could sit alongside its movies and television programming.

The company subsequently acquired and established development studios while rapidly expanding the number of games offered to subscribers.

In 2023, Netflix described an ambitious strategy of making the service a destination for games and said it had launched 40 titles that year alone. The company specifically highlighted Oxenfree II: Lost Signals as one of its first internally developed releases.

Netflix also began experimenting with bringing games beyond smartphones. Testing announced in 2023 expanded cloud-streamed games to televisions and computers, with the original Oxenfree among the first titles used in those tests.

The company’s strategy has evolved considerably since then.

Recent reporting indicates Netflix is increasingly concentrating its gaming business around several specific categories, including kids games, party games, narrative experiences and mainstream titles, while putting greater emphasis on games that can be streamed directly to televisions.

Closing Night School and Moonloot therefore appears to be another step in Netflix’s attempt to redefine exactly what it wants Netflix Games to become.

The End of an Important Studio for Netflix Games

Night School’s closure carries additional significance because of its place in Netflix’s gaming history.

When Netflix purchased Night School in 2021, the acquisition represented one of the clearest indications that the streaming giant intended to become more directly involved in game development rather than simply licensing titles from outside publishers.

Five years later, Netflix is shutting that studio down.

For fans, the immediate concern will naturally turn toward the future of Oxenfree. Netflix owns Night School Studio, but there has been no indication that the closure necessarily means the end of the franchise itself.

What it does mean is that the development team responsible for creating the series will no longer continue operating as Night School Studio under Netflix.

What Comes Next for Netflix Games?

Netflix isn’t abandoning gaming entirely.

Instead, the company appears to be narrowing its approach after years of experimentation involving mobile games, internal development studios, licensed titles and cloud gaming.

Whether that strategy ultimately produces a sustainable gaming business remains an open question.

The closure of Night School is nevertheless a significant moment. Oxenfree earned the developer a dedicated following long before Netflix entered the picture, while the studio’s acquisition represented an important early milestone in Netflix’s gaming expansion.

Now, less than five years after Netflix welcomed Night School into its growing gaming operation — and only weeks after the studio released Unhinged — that chapter is coming to an end.

For Netflix, the restructuring represents another attempt to find the right direction for its gaming ambitions.

For Night School Studio and fans of Oxenfree, it marks the end of a developer that helped demonstrate just how effective interactive storytelling could be.