Team “Blue” was meant to be a AAA game development studio fully owned and backed by Netflix. Per Game File (via Stephen Totilo), the all-star California-based studio was formally shuttered in October 2024. In 2022, when Netflix initially wanted its own gaming corner, the company decided to hire the best the industry had.
Chacko Sonny, a former executive producer on Overwatch, was one of the first to be recruited. Later, Netflix brought on long-time Halo veteran, Joseph Staten. After being hired in 2023, Staten announced on his X (formerly Twitter) account he’d be the studio’s creative director.
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“So today, I’m thrilled to announce that I’ve joined [at]Netflix Games as Creative Director for a brand-new AAA multiplatform game and original IP. Let’s go!” Staten said. A few more big hires later, Netflix was set to carve out its own piece of the gaming pie. The move wasn’t unlike Amazon Games’ efforts, readily seen in titles such as the recent hit, Throne and Liberty. However, “Team Blue” was disbanded before they had a chance to release a single game.
netflix quietly cuts its aaa game studio
It’s no secret that Netflix has been workshopping its entry into the games industry. As of this writing, the streamer still has developers Spry Fox, Next Games, Boss Fight Entertainment, and Night School. (Netflix confirmed to Game File that these studios will be unaffected by Team Blue’s closure.)
Additionally, Netflix has been seeing significant success with its mobile game output. According to AppMagic, Storyteller has had 15 million downloads in the span of a year. It would seem as though the “niche” approach has worked in Netflix’s favor over a bigger, more spectacular AAA project.
Reportedly, Netflix’s eyes are on games focused around their original IPs — Squid Game, Stranger Things, The Ultimatum, etc. Whether the company has another surprise up its sleeve for the competitive, expensive AAA field is currently unknown. However, as it stands, the closure of Team Blue signals a crushing loss for what could’ve been the beginning of a legendary studio. Netflix, as of this writing, hasn’t formally commented on the reason for the separation.