Netflix to Close Night School Studio in Los Angeles, Plans to Shut Helsinki’s Moonloot

Netflix is closing Night School Studio, the Los Angeles game developer behind Oxenfree, and is planning to close its Helsinki-based Moonloot studio, according to PC Gamer, which reported Aug. 13 that Netflix confirmed the moves in a statement. The decision comes just weeks after Night School released its new game, Unhinged, and about a month after Netflix highlighted it in investor materials as one of the company’s strongest cloud game launches.

The timing makes the move especially notable inside Netflix’s games business. Night School is a well-known indie narrative studio that Netflix acquired in 2021 as part of its early push into game development, making the closure a sharp shift for one of the company’s most visible in-house teams.

Game File first reported the closures, and PC Gamer said Netflix later confirmed them. According to PC Gamer, Netflix said it is also “eliminating some additional Games roles.” The company did not provide layoff numbers, effective closure dates, or details on severance, ongoing projects or plans for the studios’ intellectual property.

The sequence is striking. Night School’s Unhinged launched June 30, 2026. Then, in Netflix’s July 16 shareholder letter and Form 8-K earnings materials, co-CEO Greg Peters pointed to the title as a standout. “FIFA and Unhinged became our two most successful cloud game debuts, really solid numbers that put it in the top tier of game performance for us,” Peters said. In the same period, a Netflix spokesperson told PC Gamer: “Games continue to be an opportunity for us to expand the variety of entertainment we offer Netflix members, and we’ve built solid foundations in our key focus areas: Kids (Netflix Playground), Party (Netflix Minigolf), Narrative (Unhinged) and Mainstream (FIFA World Cup: Launch Edition). … We’re especially excited about the momentum we’re seeing with cloud games and kids games.”

By Aug. 13, however, Netflix was describing the studio closures as part of an internal reorganization. According to PC Gamer, the company said it is “making organizational changes to the business” and sees “an opportunity to be more focused in our execution.” The company also said: “We’re grateful for Night School’s work in pushing the boundaries of storytelling through games with Unhinged.”

Night School was founded in 2014 by Sean Krankel and Adam Hines and became best known for its narrative games, including Oxenfree and Oxenfree II: Lost Signals. Netflix acquired the studio in September 2021, an early sign of its ambition to build games alongside its film and TV business. Moonloot, by contrast, was established by Netflix in Helsinki in 2022, according to the company’s games and jobs pages.

Netflix has not publicly said what happens next for affected staff, any in-development projects, or the future of Night School and Moonloot’s game properties.