Netflix Shuts Down Oxenfree Studio After Unhinged Release

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Night School, the studio behind Oxenfree and Unhinged, will be shut down by Netflix just days after the narrative horror game's release.

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Netflix will shut down Night School, the Los Angeles-based studio known for Oxenfree and Oxenfree 2: Lost Signals. The closure comes just days after the release of Unhinged, a first-person narrative horror game developed in partnership with Weapons director Zach Cregger.

The company will also shut down Moonloot, a team based in Helsinki, Finland. The studio had not released any games and was working on an unannounced life simulation project.

A Netflix spokesperson confirmed that the company will continue investing in games on its platform. According to the spokesperson, the move is intended to focus the division's efforts on fewer initiatives. The company thanked the affected employees and said games remain an opportunity to expand the range of entertainment offered to subscribers.

Released on June 30, Unhinged features Sadie Sink and Zoë Kravitz. The game offers a narrative- and choice-driven horror experience, described by critics as a “choose your own path” adventure that blends fun and fear.

A former Night School employee commented on the closure on LinkedIn. He said the studio had delivered Unhinged six weeks earlier and that the game had reached millions of satisfied players. He also expressed pride in the team's work while confirming that, like the other employees, he had resumed his search for a new job.

The closure of Night School follows the shutdown of Team Blue in 2024 and Boss Fight Entertainment in 2025. Netflix founded Team Blue in 2022, but the studio closed without releasing any games. Boss Fight, which was acquired that same year, released several titles before shutting down.

During an investor call held in July 2026, co-CEO Greg Peters described Unhinged as one of Netflix's most successful cloud gaming releases, with “very solid” numbers within the company's overall performance. Netflix also says it will continue calibrating its investments in the sector.

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