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Netflix's Heartless Betrayal: The Fall of Night School Studio and Moonloot Games
14.08.2026 By Paweł Kiśluk 3 min ...

Netflix's Heartless Betrayal: The Fall of Night School Studio and Moonloot Games

Netflix axes indie darlings Night School Studio (creators of cult hit Oxenfree) and Moonloot Games, sparking outrage among gamers. It's another example of how corporate giants treat indie developers' dreams.

Netflix continues its brutal policy towards the gaming industry, shutting down not only Night School Studio, responsible for the cult hit Oxenfree, but also Moonloot Games, working on a promising Animal Crossing-style project. This decision, made despite earlier declarations of supporting creativity, raises many questions about the giant's real intentions and the future of independent developers. What's worse, Night School Studio was acquired by Netflix back in 2021, which only emphasizes the hypocrisy of this move. Our report draws from Game Developer.

Game / Series Oxenfree / Night School Studio
Genre Narrative horror, indie
Developer Night School Studio, Moonloot Games
Publisher Netflix
Release Date 2016 (Oxenfree I), 2021 (Oxenfree II)
Target Platforms PC, consoles, mobile
Cover Art
Netflix

Key Facts at a Glance:

  • Netflix shutters Night School Studio (Oxenfree) and Moonloot Games
  • Move follows broader cuts in Netflix's gaming division
  • Night School Studio acquired by Netflix in 2021
  • Moonloot Games was Netflix's internal studio working on Animal Crossing-style game

Buy, Drain, Discard: Netflix's Corporate Playbook

Netflix, charging gamers $350-450 annually for subscriptions, can't even keep two studios alive - including the creators of Oxenfree, one of the most iconic indie games. Night School Studio, masters of teenage angst, now get branded by their own employer. More proof corps don't have a clue about gaming.

Netflix calls this „striving for greater efficiency”. In reality, it's classic corporate greed: buy, drain, discard. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Remember, Netflix recently declared ambitions to become the mobile Steam. Yet they've already left bodies along the way - studios like Team Blue and Boss Fight Entertainment. What's the point of exclusive titles like FIFA or GTA if they can't appreciate real talent?

Of course, some say „it's just business”. Too simplistic. For many, Oxenfree wasn't just a game - it was story, emotion, a world worth revisiting. Netflix, like a godfather gone wrong, absorbed all that only to trash it immediately. Another indie dream crushed by corporate machinery.

History Repeats Itself: Netflix's Pattern of Betrayal

Netflix already showed they don't care about studios. Remember: they acquired Night School Studio in 2021 and shuttered Team Blue in 2024. That's one studio closure per year. This isn't strategy - it's cruelty. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Netflix calls this „striving for greater efficiency”. In reality, it's classic corporate greed: buy, drain, discard. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Remember, Netflix recently declared ambitions to become the mobile Steam. Yet they've already left bodies along the way - studios like Team Blue and Boss Fight Entertainment. What's the point of exclusive titles like FIFA or GTA if they can't appreciate real talent?

Of course, some say „it's just business”. Too simplistic. For many, Oxenfree wasn't just a game - it was story, emotion, a world worth revisiting. Netflix, like a godfather gone wrong, absorbed all that only to trash it immediately. Another indie dream crushed by corporate machinery.

Netflix already showed they don't care about studios. Remember: they acquired Night School Studio in 2021 and shuttered Team Blue in 2024. That's one studio closure per year. This isn't strategy - it's cruelty. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Netflix calls this „striving for greater efficiency”. In reality, it's classic corporate greed: buy, drain, discard. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Remember, Netflix recently declared ambitions to become the mobile Steam. Yet they've already left bodies along the way - studios like Team Blue and Boss Fight Entertainment. What's the point of exclusive titles like FIFA or GTA if they can't appreciate real talent?

Of course, some say „it's just business”. Too simplistic. For many, Oxenfree wasn't just a game - it was story, emotion, a world worth revisiting. Netflix, like a godfather gone wrong, absorbed all that only to trash it immediately. Another indie dream crushed by corporate machinery.

Mechanical Thinking: Studios as Spreadsheet Numbers

Netflix treats studios like spreadsheet numbers. When the numbers don't look pretty, they don't fix - they just hit „Game Over”. These decisions aren't just economic losses but cultural ones. Oxenfree is part of gaming history. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Netflix calls this „striving for greater efficiency”. In reality, it's classic corporate greed: buy, drain, discard. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Remember, Netflix recently declared ambitions to become the mobile Steam. Yet they've already left bodies along the way - studios like Team Blue and Boss Fight Entertainment. What's the point of exclusive titles like FIFA or GTA if they can't appreciate real talent?

Of course, some say „it's just business”. Too simplistic. For many, Oxenfree wasn't just a game - it was story, emotion, a world worth revisiting. Netflix, like a godfather gone wrong, absorbed all that only to trash it immediately. Another indie dream crushed by corporate machinery.

The Price of Dreams: Netflix's Subscription Model

Netflix, charging Poles $350-450 for subscriptions, can't maintain their own studios. This says everything about their approach: profits over talent. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Netflix calls this „striving for greater efficiency”. In reality, it's classic corporate greed: buy, drain, discard. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Remember, Netflix recently declared ambitions to become the mobile Steam. Yet they've already left bodies along the way - studios like Team Blue and Boss Fight Entertainment. What's the point of exclusive titles like FIFA or GTA if they can't appreciate real talent?

Of course, some say „it's just business”. Too simplistic. For many, Oxenfree wasn't just a game - it was story, emotion, a world worth revisiting. Netflix, like a godfather gone wrong, absorbed all that only to trash it immediately. Another indie dream crushed by corporate machinery.

End of an Era: Netflix Crushes Indie Legacy

Shuttering Night School Studio marks the end of an indie gaming epoch. This studio proved indie could be deep, emotional, artistic. Netflix destroyed this legacy without blinking. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Netflix calls this „striving for greater efficiency”. In reality, it's classic corporate greed: buy, drain, discard. Night School Studio had Oxenfree's success under its belt, and Oxenfree II attracted solid player numbers. Moonloot Games, though lesser-known, worked on an Animal Crossing-style game. Instead of investing in development, Netflix chose to „reduce excess roles”. Polish for „another miscalculation”. Community frustration grows as this disrespect continues.

Remember, Netflix recently declared ambitions to become the mobile Steam. Yet they've already left bodies along the way - studios like Team Blue and Boss Fight Entertainment. What's the point of exclusive titles like FIFA or GTA if they can't appreciate real talent?

Of course, some say „it's just business”. Too simplistic. For many, Oxenfree wasn't just a game - it was story, emotion, a world worth revisiting. Netflix, like a godfather gone wrong, absorbed all that only to trash it immediately. Another indie dream crushed by corporate machinery.

What do you think?

FAQ

Why did Netflix decide to close Night School Studio and Moonloot Games?

The company cites desires for increased efficiency and strategic focus. In practice, this means layoffs and studio closures.

Will Oxenfree II remain available?

Netflix hasn't commented on games from shuttered studios. Oxenfree II may stay available, but future updates are unlikely.

What are the implications for indie gaming's future?

This sends a terrible message. When giants like Netflix axe studios, other indie developers may fear for their futures.

What other studios has Netflix closed?

Netflix previously shuttered Team Blue, Boss Fight Entertainment, and Spry Fox. A clear pattern of abandoning ambitious projects emerges.

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About the Author

Paweł Kiśluk

Game enthusiast, developer, and creator of kvikee.com. He has been following gaming industry trends for years, blending technology with pure entertainment.
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