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Netflix is shutting down two more game studios including the maker of Oxenfree

Night School is one of the two companies facing oblivion.
Ben Lyons Senior Editor 14 August 2026

If you thought you might have the luxury of heading into the weekend without hearing about another game developer facing layoffs or being shut down, we have some disappointing news to share.

Game File has published a new report that claims Netflix is set to axe two more of its game studios. The developers in question include the rather famous Night School (known for making the Oxenfree titles among others) and the Helsinki-based Moonloot, which was only founded back in 2022.

In fact, the sting goes a little deeper as Night School only launched a new game six weeks ago when it presented Unhinged to the world, with this being an interactive first-person horror game available exclusively on Netflix and lasting around 30-minutes in duration. While Netflix seemed initially pleased with the performance of the project, it clearly has not done well enough for the streamer else its creator wouldn't be shuttered less than two months later.

According to a Netflix spokesperson, these closures are part of an effort to "be more focused in our execution", all while Netflix makes wider organisational changes to "the business to match those priorities."

It's also noted Netflix will be cutting even more roles from its internal games team as part of these organisational changes, but the exact number of layoffs has yet to be revealed.

Senior Editor Ben was a Senior Editor at Gamereactor UK. When he wasn’t writing, editing or filming for Gamereactor, he could usually be found playing an FPS or getting lost in a sprawling RPG.
Full profile Gamereactor author since October 2020 · 18,577 published articles
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