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Netflix Closes Night School Studio After Release of Unhinged

Netflix has shut down Los Angeles-based Night School Studio, the creator of the Oxenfree series, weeks after the launch of its horror game Unhinged, signaling a shift away from its gaming investments.

Netflix Closes Night School Studio After Release of Unhinged

Night School Studio, the indie developer best known for the atmospheric adventure *Oxenfree*, has been closed by its parent company Netflix. The decision comes only weeks after the studio released *Unhinged*, a first-person horror title developed in collaboration with filmmaker Zach Cregger and featuring voice work from Sadie Sink and Zoë Kravitz. Netflix, which acquired the studio in 2021, cited a need to "be more focused in our execution" as the reason for the organizational changes. ## Netflix’s Recent Gaming Pullback The closure of Night School follows a broader pattern of cost-cutting within Netflix’s gaming division. Finnish studio Moonlot, which was reportedly working on an unnamed life-simulation project, was also shuttered around the same time. Industry reports suggest the streaming giant is reallocating resources away from game development, though Netflix’s public statement frames the moves as a strategic refocus rather than a retreat from the market. ## Recent Releases and Reception *Oxenfree II: Lost Signals*, the sequel to the original 2016 title, was funded by Netflix and launched in 2023 to critical praise similar to its predecessor. The studio’s latest effort, *Unhinged*, arrived on 30 June and garnered positive reviews for its tense atmosphere and narrative design. Despite the acclaim, the article notes that Netflix’s promotional push for the game was modest, with limited coverage beyond standard gaming outlets. ## Reactions from the Team A former Night School employee posted on LinkedIn that, despite directing *Unhinged* and delivering it to a large player base, the studio’s staff are now seeking new opportunities. The message highlighted pride in the work completed and confidence that the game resonated with millions of players, even as the studio faces dissolution. ## Implications for Netflix’s Gaming Strategy The pattern of acquiring studios-such as Boss Fight and Team Blue-and later dissolving them after limited or no releases raises questions about the consistency of Netflix’s approach to interactive entertainment. While the company continues to tout high player counts for titles like *Unhinged* and a FIFA World Cup tie-in, the timing of staff reductions suggests a volatile environment for developers under the Netflix umbrella. The shutdown of Night School Studio represents the loss of a creative team known for crafting thoughtful, narrative-driven experiences. Observers hope that the talent behind *Oxenfree* and *Unhinged* will find new avenues to continue producing engaging games in the industry.

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