Netflix Shutters its AAA Southern California Game Studio Known as Team Blue

Netflix has reportedly shut down its southern California studio known as Team Blue. The closure comes after the company was aggressively hiring veteran talent for the past two years.

Team Blue is believed to have been Netflix’s AAA game development studio, which according to Stephen Totilo’s Game File newsletter, will no longer be operational. Since 2022, the studio has been working on an original, multiplatform AAA title under Netflix’s game banner.  There aren’t many details known about the game. However, according to Totilo, the game was to be a part of Netflix’s initial “mobile-focused expansion.”

When Team Blue officially launched in 2022, former Overwatch executive producer Chacko Sonny was appointed lead. Sonny had served under Blizzard Entertainment for five years prior to transitioning to Netflix.

Later, in 2023, Halo veteran Joseph Staten left Xbox and 343 Industries (now Halo Studios) to join the team. Staten was intregal to the first two Halo games as he worked as a writer and cinematic director. He later came back to the franchise for Halo Infinite prior to moving to work at Netflix’s studio.

Finally, Netflix’s Team Blue also hired Raf Grassetti in 2023. In May of that year, Grassetti was brought on board, likely due to his resume in art. Prior to working at Netflix, Grassetti spent nearly a decade at Sony Santa Monica, where he worked as the art director on the God of War series.

It’s being reported that all three employees have left Team Blue as the studio closes its doors.

This studio closure is another mark in Netflix’s tumultuous attempt to break into the games market. In 2023, Netflix published Oxenfree 2 from Night School Studio, a team Netflix acquired. Netflix also published Poinpy, in collaboration with Devolover Digital. These two titles are the most acclaimed games to have come from Netflix’s gaming venture.