Netflix pivots gaming strategy: shuts down internal studios, focuses on lower-risk IP-driven games

Netflix shut down Night School Studio and Moonloot just weeks after their latest releases, signaling a sharp retreat from ambitious internal game development. The company is pivoting toward kids, party, story-driven games, and mainstream IP like FIFA. This follows earlier studio closures and aligns with broader resource reallocation toward proven, scalable content. Cloud gaming MAU up 11X, but internal development is being scaled back. Take-Two CEO explicitly rejected acquisition, limiting M&A options.