Netflix shuts down game studio without releasing a single game

Netflix has closed one of its AAA game development studios, known as Blue, without ever releasing a game. The closure, confirmed by Netflix and first reported by Game File, comes just three years after the streaming giant began its foray into the gaming industry.
Blue studio was formed in 2022 under the leadership of Chacko Sonny, a former executive producer for Overwatch. The studio had recruited a team of industry veterans, including developers with experience on major franchises like Halo and God of War, and was reportedly working on a multi-platform AAA game based on an original intellectual property (IP). However, Blue was shut down before the game was officially announced or released.
Netflix has been steadily building its gaming presence since 2021, initially focusing on mobile games. Its early offerings consisted of hyper-casual titles, but the platform has since expanded to include mobile-exclusive ports of well-known games such as Grand Theft Auto and Hades, alongside internally developed titles like Cozy Grove: Camp Spirit and Oxenfree II: Lost Signals.
The company had previously been expanding its game development pipeline through acquisitions and new studio launches. Recent additions included a mobile game studio in Helsinki, a new studio in Southern California, and the acquisition of Spry Fox, the developer behind Cozy Grove. However, with the closure of Blue, Netflix’s ambitions in producing AAA games may be on hold.