Netflix shocked the gaming world by shutting down Team Blue, the in-house studio previously formed to create "next big thing" in the gaming industry. This closure raises questions about the new direction Netflix will take in their gaming ambitions.
Team Blue and the Changing Direction of Netflix's Strategy
Team Blue was formed in 2022 as a major move by Netflix to strengthen its position in the gaming industry, bringing in big names such as Chacko Sonny, a former executive of the company. Overwatch, as the head of the studio. The studio is designed to work on ambitious projects that are expected to make a big impact, elevating Netflix as a major player in gaming.
However, reports from Gamefile mentioned that Netflix's big gaming ambitions were apparently "derailed," and it decided to shut down Team Blue. With this change, Netflix is now under the leadership of Alain Tascan, the new president of the gaming division. The company's focus has now shifted to developing games based on their Intellectual Property (IP), such as Squid Game and Virgin River ChristmasThis is a more strategic step in creating an entertainment ecosystem that is integrated with Netflix's streaming service.
Mobile Game Success and Future Plans
Despite the closure of Team Blue, Netflix is still having success in the mobile gaming sector. Oxenfree 2: Lost Signals and Grand Theft Auto Trilogy is a testament to their success in attracting user interest, even praised by Take-Two CEO Strauss Zelnick. He called the collaboration a "huge success" that managed to quickly achieve high install rates and engagement on the Netflix platform.
This success shows that Netflix has a big opportunity in mobile gaming. Going forward, Netflix will be strengthening its gaming portfolio with their IP-based projects, including Monument Valley 3, which will be released exclusively on the Netflix platform. The move is part of Netflix's approach of focusing more on in-house IP, delivering a more immersive gaming experience directly linked to popular content on their platform.
Does this mean Netflix is less focused on the gaming industry?
The closure of Team Blue, along with the change in leadership, illustrates the change in Netflix's gaming strategy. Netflix Co-CEO Gregory Peters stated that the company is now very enthusiastic about developing their own IP-based games, including popular content such as Squid Game and projects Virgin River Christmas. This shows that Netflix is moving away from the grand ambition of creating independent games towards developing games that are more connected to their entertainment ecosystem.
Gamefile's Stephen Totilo noted on X that the closure of Team Blue is 'a clear sign that the new leadership is pulling out of one big bet.' He added that Netflix still has other game studios in operation, and company executives seem enthusiastic about growth targets and the development of games connected to series or movies on their platform.
The closure of Team Blue represents a major shift in Netflix's gaming strategy, but it's not the end of their ambitions in the gaming industry. Through a new approach that focuses on IP-based games, Netflix still has a chance to succeed by creating a unique and integrated entertainment experience for its users. This move opens up the possibility for Netflix to develop a complementary ecosystem between games and streaming content, providing a richer and more immersive experience in the future.
Source: Game Files Via PC Gamer
