Netflix Ends Ambitious RPG Project as Team Blue is Disbanded

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Key Takeaways

  • Netflix has closed its Los Angeles-based AAA game studio, Team Blue, just two years after its launch.
  • The decision reflects broader changes in Netflix's gaming division and a shift in focus towards mobile gaming.
  • It remains uncertain if Team Blue's game will be continued or shelved entirely.

Netflix has closed its LA-based AAA game studio, internally known as “Team Blue,” which had been working on a third-person action RPG for PC. 

The decision comes less than two years after the studio’s launch, marking a significant shift in Netflix’s gaming strategy.

Team Blue was founded with high hopes in 2022, led by Chacko Sonny, former executive producer of Overwatch.

The studio quickly attracted industry veterans such as Joseph Staten, a former creative lead at Bungie and writer for Halo, and Rafael Grassetti, an art director known for his work on God of War. Their presence signaled Netflix’s ambition to create a big-budget game that could compete with established console and PC titles.

However, despite the star-studded team and promising early development, Netflix has decided to shut down the studio.

A report from Stephen Totilo’s Game File newsletter suggested the decision follows broader changes within Netflix’s gaming division.

Over the summer, Mike Verdu, who had led the company’s gaming efforts, transitioned into another role, with Alain Tascan, formerly of Epic Games, taking over. Shortly after Tascan’s arrival, Business Insider reported staff reductions of around 35 people, though Totilo suggested a lower number.

While the closure of Team Blue might raise questions about Netflix’s broader gaming ambitions, the company is not stepping away from the gaming industry entirely.

Other studios under the Netflix banner—such as Night School Studio (Oxenfree), Next Games, Spry Fox, and Boss Fight Entertainment—are expected to continue their work. These studios primarily focus on mobile games, which have been a core part of Netflix’s gaming strategy since the launch of its mobile game library in 2021.

It remains unclear whether the game Team Blue was developing will continue under another studio or be shelved entirely. For now, Netflix seems to be reassessing its AAA development plans while maintaining its focus on mobile gaming.