Netflix’s gaming division, primarily known for its indie and mobile titles, recently ventured into AAA game development by hiring top talent from high-profile franchises like Halo, Overwatch, and God of War. However, that strategy seems to be coming to an end, as Netflix has confirmed the shutdown of its AAA studio, Team Blue, to Game File.
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In 2022, Netflix brought on former Overwatch lead Chacko Sonny to head up the Southern California-based AAA studio. A year later, they hired Halo veteran Joseph Staten as Creative Director, followed by God of War art director Rafael Grassetti. Staten had previously announced that the team was working on an ambitious multi-platform AAA game with an entirely new IP.
However, those executives are no longer with Netflix, and the company confirmed the closure of Team Blue. Both Staten and Grassetti were contacted by Game File and Engadget for comment, though they have yet to respond.
Netflix entered the gaming industry in 2017 with a mobile game based on its hit series Stranger Things. Since then, the company focused primarily on acquiring mobile publishing rights for indie games such as Into the Breach and Terra Nil, while also developing a number of in-house titles. By 2023, Netflix had around 90 mobile games in the works through both in-house and partner studios.
These mobile games, accessible through Netflix’s app, complement the company’s broader streaming strategy. The launch of Team Blue, with its goal of developing a multiplatform AAA game, seemed to diverge from this model. “Funding the development of a multiplatform AAA game is significantly more ambitious and, it should be noted, risky.”
