Netflix’s AAA Game Studio With Talent From Overwatch and Halo Shuts Down

Netflix's AAA Game Studio With Talent From Overwatch and Halo Shuts Down

Key Takeaways

  • Netflix’s AAA game studio, “Blue,” has shut down despite big industry talent hires.
  • Netflix remains interested in gaming but will focus on smaller experiences, not AAA-style games.
  • Netflix’s business model is more similar to Xbox Game Pass, focusing on services for media.

As a lifelong gamer and Netflix enthusiast, I have to say this latest news about Netflix’s AAA game studio, Blue, has left me a bit blue myself. The closure of the studio, despite hiring some heavyweight industry talent, is undeniably disappointing.


Recently, Netflix has been exploring the world of video games. In fact, they’ve established their very own top-tier game development studio, focusing on creating an original intellectual property as a mystery project.

And… it’s gone. The studio, once known only as “Blue,” has officially shut down.

In theory, the hiring of well-known video game talents at this studio was expected to produce an exceptional product and boost Netflix’s reputation as a gaming platform. However, for some unexplained reason, the anticipated outcome never materialized. The cause behind this discrepancy may remain unclear.

Within their team, the game studio boasted Overwatch’s Executive Producer, Chacko Sonny, along with Joseph Staten, a creative leader renowned among Halo enthusiasts.

Netflix's AAA Game Studio With Talent From Overwatch and Halo Shuts Down

Besides these, the studio also brought on board alumni from Sony, Blizzard, Bungie, and others. It remains unclear how many of these high-profile hires may currently be unemployed. Netflix has commented that some have been reassigned to different initiatives.

It seems highly probable that whatever project Blue was engaged in was a significant one, given their exceptional talent. Investments of such caliber don’t come without a hefty price tag, and it’s unlikely that Netflix took this decision lightly. The concept of “Sunk Cost” has often led to disasters in the past, but for some reason, even the sunk cost fallacy didn’t manage to salvage this situation.

Netflix’s Next Steps into Gaming

Netflix's AAA Game Studio With Talent From Overwatch and Halo Shuts Down

Netflix clarified that the recent shutdown of its gaming service doesn’t mean a diminished enthusiasm for games. Instead, they are focusing on different types of games at this time, and it’s unlikely we’ll see an AAA-style game from them in the immediate future.

Instead, I reckon they’ll continue their work but with a focus on creating compact, portable experiences. That’s just my guess based on their current direction.

As a gaming enthusiast, I must admit that series adapted from games have been quite successful on the streaming platform, with Arcane standing out as a prime example. While it’s unlikely we’ll see Netflix diving into console production anytime soon, their focus on game-based content seems to be here to stay.

Lately, it appears that Netflix’s business strategy bears a striking resemblance to services such as Xbox’s Game Pass. This alignment is understandable, considering Netflix’s business model has been a significant influence on the development of similar strategies.

Instead, they seem more inclined to focus on their strengths. If that involves functioning as a subscription platform for others’ media, then that’s the path they plan to take.

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2024-10-23 22:38