Netflix has shut down its Southern California-based video game studio, referred to internally as “Team Blue,” which had a specific focus on producing AAA games.

Netflix closes its AAA game studio, Team Blue, following the departure of key executives and layoffs affecting 35 staff.

Netflix has also acquired or spun-up a number of studios to support its gaming pipeline. The most recent additions were a mobile game studio in Helsinki, a new studio in southern California, and Cozy Grove developer Spry Fox. But with the closure of Blue, Netflix’s trend of expansion may be over as well as its grander AAA ambitions.

Netflix has reportedly shut down its southern California studio known as Team Blue since opening in 2022. and is said to have been working on a AAA game.

In a brutal year of gaming layoffs, Netflix has shut down a studio focused on an original "AAA multiplatform" title. The Southern California outfit was apparently known as team "Blue" and featured employees with experience on franchises like Halo, Overwatch, and God of War.

Netflix has shut down its triple-A gaming studio set up in Southern California, leading to the exit of a number of high-profile developers from the company and sparking questions about its gaming ambitions.

Netflix has shut down its AAA Southern California game studio known as Team Blue. As reported by Game File, Netflix confirmed its fifth internal studio had been closed, and that three hires on the team had left the company. This included studio lead Chacko Sonny, creative director Joseph Staten, and art director Rafael Grassetti.

Netflix tried once more to get into the gaming industry and, yet again, failed. Team Blue shut down "Team Blue" was the creative name of Netflix's game studio, with which they hoped to finally find success in the gaming scene.

Netflix has reportedly shut down its major AAA gaming studio which has led to a number of high-profile developers leaving the company. GameFile reports the company's Southern California game studio, which was known as team 'Blue',