Netflix Shuts Down Night School Studio

Netflix has closed Night School Studio, the developer behind the acclaimed Oxenfree series, along with Helsinki-based Moonloot Games. The decision was announced in mid-August 2026, just six weeks after Night School released its latest title, the Netflix exclusive Unhinged.Night School was acquired by Netflix in 2021 as the streaming company’s first major games studio purchase. The team is best known for the original Oxenfree (2016) and its sequel Oxenfree 2: Lost Signals (2023), both praised for their narrative-driven, atmospheric storytelling. Moonloot, founded in 2022, had not yet released a title and was reportedly working on an Animal Crossing-inspired project.

A Netflix spokesperson explained the move as part of a broader effort to focus on kids’ games, party games, story-driven experiences with mainstream appeal, and titles optimized for television. Additional roles within Netflix’s internal games teams are also being eliminated, though exact numbers have not been disclosed. Next Games remains one of the few remaining internal studios.

The closures highlight the challenges streaming platforms face when expanding into full-scale game development. While Unhinged was described by Netflix as one of its more successful cloud debuts, the company has chosen to streamline its games organization around more accessible, high-volume formats. Fans of Night School’s distinctive style of narrative adventure will be watching to see where the talent lands next.