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Netflix closes AAA star-studded studio before announcing new game.

Reports have indicated that Netflix has shut down its in-house studio, referred to as Blue, which consisted of AAA video game industry experts. The team was never officially announced, even in a single match.

According to a report from Game File, the streaming giant has closed the Southern California studio as of this month. Although it was one of many internal studios at Netflix working on new titles, Blue stood out thanks to a series of high-profile hires over the past two years.

Netflix never officially announced what Blue was working on, but there were hints if you knew where to look. MobileGamer.biz spotted some job listings in November 2022 mentioning that Netflix was working on a “completely new AAA PC game” and needed people experienced in working on first-person or third-person shooter games. This could have been a big move for the company. Although it had just begun to ramp up video game development at this stage, it had mostly focused on mobile titles, indicating it was looking at a multi-platform strategy.

This was further bolstered by bringing in industry veterans to lead the studio. Former Overwatch executive producer Chacko Sonny left Blizzard in 2021 amid controversial legal proceedings and was appointed to lead Blue. Former God of War director Rafael Grassetti was also appointed as creative director in 2023, followed by Joseph Staten, who worked on Halo games at Bungie and was appointed by 343 Industries for Infinite Halo above the finish line. Staten’s X account (formerly on Twitter) says Blue was also working on an “original IP title.”

While none of the executive directors publicly commented on the closure process, Grassetti posted an out-of-context popcorn animated image. You can interpret that as you like. Game File says the three executive directors are no longer working with Netflix.

Netflix still has four internal studios currently working on titles. They acquired Oxenfree developer Night School Studio, mobile game developer Next Games, and Boss Fight Entertainment, and established a studio in Helsinki in 2022. They also publish third-party games on their platform, accessible to anyone with a Netflix subscription. Some games you can play include Grand Theft Auto: San Andreas, Spiritfarer, Stray, and Griftlands.

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