Netflix closed two more studios and fired employees

Despite being satisfied with the performance of two recently released games, Netflix decided to close two studios. One of them was responsible for the development of “Oxenfree II: Lost Signals”, the “Black Mirror: Thronglets” app and the newly released “Untinged”.

14/08/2026
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Adespite the investment made in the world of video games, it seems that Netflix is not satisfied with the results obtained. Says journalist Stephen Totilo in game File website that Netflix will close two of its studios dedicated to the development of video games.

One of the studios that will be closed is Night School Studio, the first one that was purchased by Netflix in 2021 and which is responsible for “Oxenfree II: Lost Signals”, the app “Black Mirror: Thronglets” and also for “Untinged” – a horror game released just over a month ago. The Finnish studio Moonloot Games – which Netflix founded in 2022 to develop mobile games – will also be officially closed.

Workers affected by this decision are not limited to these studios, with the publication advancing that Netflix plans to fire a number of employees from its own internal team dedicated to video game production.

Netflix will have postponed the final season of one of its exclusive series

It is known that the recordings of the fifth and final season of “The Witcher” ended in late 2025 and the release was originally scheduled for this year. However, it seems that Netflix has changed its plans.

Miguel Patinha Dias

In official statements, a Netflix spokesman stated that these decisions aimed to bet on games most suitable for children, narrative experiences and party games, giving as an example the game “FIFA World Cup: Launch Edition” which was released in june. However, in early August, it was reported that the producer of “FIFA World Cup: Launch Edition”, Refactor Games, fired about 85% of its workers.

Even in statements during the latest presentation of the company’s financial results, in July Netflix’s co-CEO, Greg Peters, implied that the company was satisfied with the performance not only of “FIFA World Cup: Launch Edition” but also of “Unhinged”.

“Squid Game” in the US? Netflix will have decided to cancel series

There have been rumors about the American version of “Squid Game” for nearly two years. The initial information associated David Fincher (“Seven”, “Combat Club”, “In Part Uncertainty”) to the project, but it does not seem to be moving forward.

Miguel Patinha Dias

“ We have built solid foundations and we are now seeing positive signs that help inform and give us a greater conviction of our future growth, as well as the nature of this growth,” Peters said. “‘FIFA’ and ‘Untinged’ have become our two biggest game debuts in the cloud, with very solid numbers that put them at the top of our gaming performance table.”.

Remember that these are just the latest studios closed by Netflix. Netflix currently has only Next Games and Netflix Games Studio, which is mainly dedicated to signing agreements with external producers.