In a surprising turn of events, Netflix's newly minted dive into the world of AAA gaming just hit a wall. Originally best known for its indie and mobile titles, the streaming giant had made headlines recently with the hiring of high-profile executives from such well-known franchises as Halo, Overwatch, and God of War. The move came as a strategic step to upscale the Netflix gaming portfolio, but the company has now confirmed shutting down the AAA studio popularly referred to as Team Blue, according to Game File.
Netflix entered gaming as far back as 2017 when it launched a retro-inspired mobile gaming title based on its hit series, Stranger Things. Over the years, the firm focused its effort on buying mobile publishing rights for indie hits like critically acclaimed Into the Breach and Terra Nil. Netflix also is making a raft of mobile games in-house, which drives a strong pipeline of almost 90 titles currently in development by 2023, both internally and from other studios it has partnered with. These games are accessible directly in the Netflix app, perfectly fitting into the greater streaming strategy of the company.
The 2022 formation of Team Blue was a bold shift in ambition for Netflix Gaming. This was the studio headed by former Overwatch leader Chacko Sonny, brought aboard to head up this new Southern California-based AAA studio. This was followed by the inclusion of Halo veteran Joseph Staten as the Creative Director and Rafael Grassetti, reportedly having designed some of the best-selling God of War series as an art director. At the time, Staten explained that he looked forward to working with a multi-platform AAA game featuring a brand new IP, something Netflix needs to move it into the big leagues of gaming.
Despite these promising developments, Team Blue's ambitious plans have now been shelved. Netflix confirmed to Game File that the studio has closed, and both Staten and Grassetti are no longer with the company. The sudden demise of Team Blue brings into question where Netflix is going in the future with its lineup of games, especially as it gets deeper into developing high-budget games that move away from its established mobile and indie-focused setup.
That makes the decision to axe Team Blue particularly remarkable, considering the inherent risks that come with funding development on a multi-platform AAA game. As pointed out by Engadget's Igor Bonifacic, this is pretty much more ambitious and a riskier level than what Netflix is probably comfortable taking on when it comes to their strategy at this juncture in gaming. That, however, has been the model on which the company's successes in mobile gaming have been based to date; hence, the AAA venture would move away from that core approach.
It remains to be seen what balance will be struck between a focus on indie and mobile titles, and the desire for AAA space as Netflix reassesses its strategy on gaming. So, the fact that Team Blue has been shut down reminds us of the risks entailed by entering such a competitive market and underlines the necessity to have a feasible vision within the ever-changing video game development landscape. With Team Blue finally closed, attention will be focused on what Netflix's next move will be regarding gaming-to say the least-from gamers to analysts.