Netflix has closed its AAA studio, which was founded less than 2 years ago. The studio was working on a big-budget game for PC and consoles. It is reported by Game File.

The studio was known as Team Blue. It consisted of Overwatch executive producer Chaco Sonny, Halo franchise creative director Joseph Staten, and God of War art director Rafael Grassetti.

However, after the closure of the studio, these three, as well as many other employees, will no longer work for Netflix. The media giant did not disclose how many people were affected by the closure, but Team Blue employed other experienced gaming industry veterans.

The studio was headed by Jerry Edsall, who had more than a decade of experience in leadership roles at Microsoft before joining Netflix in the spring of 2023.

In July 2024, Alain Taskan, Executive Vice President of Epic Games, became the new head of Netflix’s gaming division. Last week, Tuskan invited Epic’s Jeet Shroff to the new position of vice president of gaming technology and portfolio development. With the appointment of Schroff, about 35 layoffs in the gaming team took place.

However, Netflix is not abandoning games altogether. The company still has studios engaged in mobile projects based on series and shows from the streaming service.