Netflix shuts down Oxenfree studio six weeks after its final horror game Unhinged

Netflix is closing Night School Studio, the California-based developer behind the acclaimed supernatural thriller Oxenfree, just six weeks after the studio released Unhinged, a short first-person horror game designed for streaming on the platform. The company is also winding down Moonloot, the Helsinki studio it founded in 2022. Job cuts are hitting Netflix's internal games team as part of the restructuring, though the exact number of affected positions has not been disclosed.

Night School first gained recognition with Oxenfree, an award-winning supernatural adventure praised for its atmospheric setting, distinctive dialogue system, and branching conversations. The studio later shipped Afterparty, a graphic adventure set in Hell. Netflix acquired the team in late September 2021 for an undisclosed sum. Under the streaming giant, Night School released Oxenfree II: Lost Signals and developed a mobile game tied to an episode of Black Mirror.

Netflix said the closures reflect a decision to focus on kids' games, party titles, story-driven experiences, and projects with broader mainstream appeal, such as its recently released FIFA game. A Netflix spokesperson told Game File: "We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities. We are incredibly grateful to the talented colleagues we're saying goodbye to today. We thank them for all their contributions to Netflix, and wish them the best."

For now, Netflix has not clarified what will happen to the Oxenfree franchise or whether the series will continue under another developer. The move marks a notable retreat from Netflix's earlier ambitions in narrative-driven gaming, as the company pivots toward more casual and mass-market titles. The shutdown comes shortly after the release of Unhinged, which was positioned as a showcase for interactive horror on the platform. Industry observers note that the closure underscores the challenges of sustaining boutique studios within large streaming businesses.