Netflix shutters its only triple-A studio, loses major industry hires

Netflix today closed one of its internal game studios, one which was poised to release a triple-A title, before it was able to produce anything. The studio was called Team Blue, founded in 2022 and based on Los Angeles, and was allegedly working on a PC game. As a result of this studio closure, the company has also lost the talent it very publicly hired, and has also reportedly made other layoffs in its games division.

Game File reported the closure, saying that Team Blue was working on a “big-budget multi-device strategy” at the time. To staff out this new studio, Netflix hired several recognizable names from major games companies — including studio lead Chacko Sonny, formerly Overwatch’s executive producer; creative director Joseph Staten, formerly creative lead on Halo; and art director Rafael Grassetti, formerly of Sony Santa Monica. According to the Game File report, all three have left the company with the closure of the LA studio.