Netflix shuts down its AAA game development studio ‘Team Blue’

AAA game development studio, Team Blue by Netflix, has reportedly shut down. Started as one of their internal studios, Team Blue onboarded former Halo creative lead Joseph Staten back in 2023 and was planning on releasing their first multi-platform AAA title.

Originally reported by Stephen Totilo at gamefile, who talked with a company rep who revealed that Staten along with two other big hires, Rafael Grassetti from Sony Santa Monica and Overwatch executive producer Chacko Sonny, are no longer at the company.

Netflix in recent year has been pushing to provide various gaming experiences and has significantly expanded their game library, which even includes the GTA San Andreas Definitive Edition. This year, the company announced multiple games in its pipeline, including licenced franchises.

Along with many internal studios, Netflix also acquired multiple popular ones like Oxenfree developer Night School Studio and Cozy Grove developer Spry Fox. However, the sudden shutdown of their AAA studio points towards the company taking less risk as per Totilo.

Also Read: Netflix announces another Cyberpunk anime with CD Projekt Red

Netflix going for smaller gaming experiences?

Considering how Netflix was focused on providing a mobile experience, the AAA title which was reportedly a multiplatform game might have been a big bet. Since the market is already very saturated with similar games, the company may have decided it’s not work the risk with a new I.P.

While the plans for an ambitious AAA title from Netflix may have been shelved, the company still have a lot going on for themselves in the gaming scene. The company had over 80 games in development, with plans to release one each month to entertain its subscribers.

The current market for AAA games is very brutal, with zero-tolerance among players. On the other hand, Indie titles and smaller scoped games focused on proving a fun experience are receiving much more praise. Perhaps, the decision was heavily influenced by reasons, although the official reasoning is not revealed.