Netflix has reportedly closed its unannounced internal AAA game studio, Blue, staffed with veteran developers from the gaming industry. The studio, which never publicly revealed any games, was based in Southern California.
According to Game File, Netflix closed the studio this month. While Netflix operates several internal game development studios, Blue was notable for its high-profile hires in recent years. Although Netflix never officially announced Blue’s projects, there were indications of its focus. In November 2022, MobileGamer.biz uncovered job listings suggesting the studio was developing a “brand-new AAA PC game,” specifically a first-person or third-person shooter. This hinted at a significant shift in Netflix’s gaming strategy, moving beyond its then-primary focus on mobile titles towards a multi-platform approach.
A close-up of the Netflix app icon n an Apple TV.
This multi-platform strategy was further reinforced by the industry veterans brought in to lead Blue. Chacko Sonny, former executive producer of Overwatch, joined the studio in 2021 after leaving Blizzard. In 2023, Rafael Grassetti, former art director for God of War, also joined, followed by Joseph Staten, known for his work on the Halo franchise at both Bungie and 343 Industries. Staten’s X (formerly Twitter) profile indicated Blue was working on an “original IP.”
None of the executives have publicly addressed the studio’s closure, though Grassetti posted a cryptic popcorn GIF on X. Game File reports that all three executives have left Netflix.
Despite the closure of Blue, Netflix continues to invest in game development. The company maintains four other internal studios, including Night School Studio (developers of Oxenfree), Next Games, Boss Fight Entertainment, and a studio established in Helsinki in 2022. Additionally, Netflix publishes third-party games on its platform, accessible to all subscribers, with titles like Grand Theft Auto: San Andreas, Spiritfarer, Into the Breach, and Shovel Knight Pocket Dungeon.
Netflix’s decision to shut down Blue marks a significant development in its gaming ambitions. While the reasons remain unclear, the closure highlights the challenges and complexities of establishing a successful AAA game studio, even for a company with Netflix’s resources.
