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Oxenfree and Afterparty development studios are closing – Night School Studio doesn’t fit Netflix’s new priorities

Olivia Bennett by Olivia Bennett
August 14, 2026
in Technology
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Oxenfree and Afterparty development studios are closing – Night School Studio doesn’t fit Netflix’s new priorities

Oxenfree And Afterparty Development Studios Are Closing Night School

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Just a month and a half ago, American Night School Studios (Oxenfree, Afterparty, Oxenfree 2: Lost Signals), owned by streaming giant Netflix, released the experimental horror film Unhinged and is now closing.

    Image source: Netflix

Image source: Netflix

According to publications game files and type Netflix will shut down two in-house studios – Night School Studio and the little-known Finnish Moonloot Games, according to an official representative for the service.

Netflix explained the decision in terms of priorities. The company now specializes in children’s games, party entertainment, story-based adventures and projects “mainstream” Such as the recent FIFA World Cup: Release Edition.

    Shortly after launch, the FIFA World Cup: First Edition team laid off 85% of its staff

Shortly after launch, the FIFA World Cup: First Edition team laid off 85% of its staff

“We see opportunities to be more focused on work, so we are making organizational changes to the business to meet those priorities.”” a Netflix representative explained to Game File.

Netflix is ​​downsizing its video game team as two studios close: “We are deeply grateful to the talented colleagues we say goodbye to today. We thank them for their contributions to Netflix and wish them all the best.”.

    Moonloot Games was acquired by Netflix in 2022 and did not release any games before or after the acquisition

Moonloot Games was acquired by Netflix in 2022 and did not release any games before or after the acquisition

Night School Studio becomes part of Netflix in 2021. Since then, the studio has released Oxenfree 2: Lost Signals, Black Mirror: Thronglets, a mobile game based on the Black Mirror series, and the aforementioned Unhinged.

In recent years, Netflix has shuttered star AAA game studios Team Blue and Boss battle (Squid Games: Unleashed), also for sale spirit fox (Soul travel) back to its founder.

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