Netflix has reportedly shut down its AAA gaming studio, Team Blue, located in Southern California, marking a significant setback in the company’s ambitious venture into high-end game development. Despite strong efforts, the studio was unable to release a single title before its closure.

Team Blue’s Short-Lived Journey

Netflix established Team Blue as part of its strategy to extend beyond mobile gaming and enter the AAA gaming space with a multi-platform, original IP. The studio, which was led by notable industry veterans like Joseph Staten, Chacko Sonny, and Rafael Grassetti, aimed to produce high-quality games on par with the top AAA titles in the industry. However, the project never reached completion, and the team was disbanded before any game could be released.

Leadership Departures

The studio’s closure has led to several key departures. Joseph Staten, who joined Netflix as the Creative Director in 2023, and Chacko Sonny, known for his work on the Overwatch series, are among those who left their roles. Rafael Grassetti, a well-known figure from God of War, was also part of Team Blue before its dissolution.

Netflix’s Broader Gaming Efforts Continue

Despite this setback, Netflix continues to expand its gaming portfolio. The company has focused heavily on mobile games, releasing over 100 titles, including partnerships on interactive stories based on popular shows such as Squid Game and Too Hot to Handle. Upcoming games like Crashlands 2, Tales of the Shire, and Rebel Moon: Blood Line show Netflix’s commitment to creating new content, though these efforts remain primarily mobile-centric.

The closure of Team Blue underscores the challenges Netflix faces in trying to break into the AAA gaming market. While the streaming giant has seen success with its smaller, mobile-focused games, its foray into high-budget, console-quality development remains uncertain.