Netflix Shuts Down AAA Game Studio BLUE

Netflix shuts down AAA “Team Blue” before it ever released a game

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

Netflix has reportedly closed its AAA video game studio in Southern California, one of several smaller outfits added to its corporate catalog in recent years. The studio had not yet produced any titles, and three important industry veteran hires brought on in the past two years have since departed.

The shutdown of AAA follows the appointment of former Epic Games executive and Ubisoft co-founder Alain Tascan as President of Netflix Games a few months ago.

Netflix Games has become increasingly active in the past few years, with more than 100 titles released by the division, including the critically acclaimed Oxenfree II: Lost Signal, legacy title Grand Theft Auto: The Trilogy and Netflix IP tie-ins for Emily in Paris, Virgin River and more, with dozens in development.

Video games were a hot topic in Netflix’s Q3 earnings call, with a focus on Netflix IP and cheaper to produce casual games to  “strengthen our entertainment offering,” according to Netflix Co-CEO Greg Peters, who detailed: “We’ve got a Squid Game coming. We’ve got a Virgin River Christmas. We’ve got The Ultimatum. We’ve got games based on storied game classics like Monument Valley 3.”

The closure represents a potential scaling back of Netflix’s ..

Netflix has released a steady stream of games on its platform since the beginning of its gaming experiment in 2021. Though it started with a small handful of hyper-casual mobile games, Netflix’s offerings have expanded to include mobile exclusive ports of iconic games like Grand Theft Auto and Hades its own internally developed exclusives like Cozy Grove: Camp Spirit and Oxenfree II: Lost Signals.

Netflix Games dropped the official announcement trailer for Squid Games: Unleashed during Gamescom in August. The title is due out timed to Squid Game Season 2 on December 26, and will be available to play over the Netflix app.