Netflix closes 'triple-A' studio Team Blue and cuts ties with senior hires

• The studio was believed to be part of a plan to take Netflix's games beyond mobile

Netflix’s internal studio Team Blue has been closed down two years after forming, according to a report from Game File.

The California studio was established in October 2022 with Overwatch executive producer Chacko Sonny at the helm. It later brought in the likes of Halo creative lead Joesph Staten and God of War art director Rafael Grassetti to create games for Netflix subscribers.

Team Blue was believed to form part of a plan at Netflix to take its game ambitions beyond mobile. Staten joined in 2023 to work on "a brand-new triple-A multi-platform game and original IP".

A Netflix spokesperson confirmed, however, that the studio has now closed and all three of these key hires have parted ways with the company.

It's not clear how many staff were impacted by the decision to shut down the team.

Game File noted a report from Business Insider that Tascan recently recruited Epic Games VP of game development Jeet Shroff as VP of game technology and portfolio development. Netflix also reportedly recently cut 35 staff from its team, including from Team Blue, though Game File said that number was likely lower.

Company shakeup

The move comes after Netflix shook up its games strategy with the hire of new president of games Alain Tascan, who previously served as EVP of development for Fortnite developer Epic Games.

He replaced the outing games VP Mike Verdu, who moved into a new "game innovation" role at the firm.

During an investor call earlier this year, co-CEO Greg Peters claimed that Netflix had tripled engagement with its games last year - without providing any specific data on usage. He admitted that engagement and impact on its overall business at its current scale was "still quite small".