Netflix closes AAA internal studio led by Halo creative head Joseph Staten

Netflix has reportedly closed its internal game studio in Southern California, which was poised to release a AAA game.

Known as team 'Blue', this was one of a handful of internal studios founded by Netflix as part of its expansion into games. It boasted staff from other major studios, including longtime Halo creative lead Joseph Staten, Overwatch executive producer Chacko Sonny, and art director Rafael Grassetti from Sony Santa Monica (God of War).

The studio closed this month and all three of its big-name hires are no longer at the company, Netflix confirmed to Game File.

It's unclear exactly what team 'Blue' was working on, though Game File reports the team was pursuing a big-budget multi-device strategy, seemingly pushing the limits of Netflix's focus on mobile.

Staten, in particular, joined the Netflix team in April 2023, following his work on Halo Infinite. "In my work life, there's nothing I love more than collaborating with others to build worlds filled with iconic characters, deep mysteries, and endless adventures," he said at the time.

It's since been noted the newly formed Halo Studios has closed its job listing for a creative director, causing speculation Staten may have returned, though this is purely conjecture.

Netflix still has other studios, including its first in-house game studio in Helsinki. It also acquired the likes of Oxenfree developer Night School Studio and Cozy Grove developer Spry Fox.

In July it was reported Netflix had over 80 games in development, with plans to release at least one a month. However, many of these are small in scope and relate to popular series like Selling Sunset and Emily in Paris.

Perhaps the company is looking to focus on these smaller experiences, rather than the ambitious AAA project 'Blue' was supposedly working on.