After releasing exactly zero games, the Netflix AAA games studio shuts down

It's better to try and fail, but that's not what Netflix apparently thinks right now. The streaming giant has put the kibosh on its own AAA game studio after releasing zero games.

Netflix, as you know, is toying with the idea to produce its own original games. They offer other studio's games on their platform, but they wanted something of their own. That's how the AAA studio project was born (a.k.a. Team "Blue").

The studio even hired some big-name industry names. The point was for Netflix to produce a top product and expand Netflix into the game giant territory. For a reason that's currently unknown, they've shut it down, though.

Could it be because almost nobody pays attention to Netflix's games (in general)?

Not so long ago, there were reports that the vast majority of the Netflix 221 million subscribers showed minimal interest in games. Despite significant investments, reportedly only 1% of users have tried Netflix’s games. Daily users average just 1.7 million!

The AAA game studio once boasted high-profile talent like Overwatch's former Executive Producer Chacko Sonny and Halo's well-known Creative Lead Joseph Staten. Netflix had also recruited experienced staff from major companies like Sony, Blizzard, and Bungie.

With the studio's shutdown, it's unclear how many of these top-tier hires are now without positions, though Netflix has reportedly shifted some of them to other projects. So, you don't need to lose sleep over them and their paychecks.

The AAA project, assumed to be ambitious given the level of talent involved, likely represented a significant investment. However, Netflix chose to halt its development despite the costs – a decision not often made lightly, even when past investments are high.

Netflix clarified that the studio closure doesn’t signal a shift away from gaming altogether. Instead, they plan to continue offering smaller, mobile-friendly games rather than high-budget, AAA-style titles. For now, Netflix seems more focused on incorporating video games into its ecosystem through accessible, on-the-go experiences rather than developing full-scale games.

Adaptations of video game franchises into shows have proven successful on Netflix, with "Arcane" standing out as a notable hit. As a result, video games are likely to stay part of Netflix's content mix, though a Netflix gaming console is unlikely.