Netflix formed an internal studio (codename Blue) that was meant to make a AAA multiplatform game based on an original IP. It is now dead.

The studio, known as Blue, was developing a multiplatform AAA game for an original IP when Netflix shut it down.

Netflix has shut down its Southern California-based video game studio, referred to internally as “Team Blue,” which had a specific focus on producing AAA games.

As Stephen Totilo's Game File reported, as of October 2024, Netflix closed one of its studios known as Team Blue. It is the first known shuttering of a Netflix game studio since the streamer started investing in gaming in 2021.

Netflix's gaming arm is best known for its indie and mobile titles, but the company recently made a push into AAA by hiring execs from high-profile franchises like Halo, Overwatch and God of War. That strategy may be coming to an end,

Netflix has shut down its AAA game studio in Southern California two years after it was launched, and they never released a video game. The studio was known as team Blue, and it was one of a “handful”

From the moment it was announced that Netflix had hired a team of former Blizzard, Bungie and Sony developers to create a AAA game, it felt too likely that little or nothing would come of it. Non-gaming companies deciding to try to grab a slice of the giant pie by spending money to recruit big names often seems to end this way (although Amazon is rather noticeably countering this right now).

Netflix should stick to its strengths by publishing quality indie games instead of wasting money trying to develop AAA titles in-house

Netflix just killed its ambitious video game studio before it even launched a single title—but it isn’t giving up on games yet. Two years ago, Netflix turned heads in the gaming world. It hired former Overwatch leader Chacko Sonny to head a new game studio.