This article first appeared on GuruFocus.
Netflix (NASDAQ:NFLX) shares dipped about 1% on Friday after the streaming company closed two internal game studios, narrowing its push into in-house development as it shifts toward games that tie more closely to its core service.
The move comes roughly six weeks after Night School released Unhinged, a game designed for play through Netflix. The studio, which Netflix acquired in 2021, is also known for the Oxenfree franchise.
Moonloot joined Netflix’s development portfolio in 2022 but had not released a title. The company is also reducing some other positions within its gaming division, although it has not provided a figure for the affected workforce.
Netflix is shifting attention toward games that connect more directly with its streaming platform, including party-oriented titles and experiences designed for televisions and PCs. The changes suggest the company is putting less emphasis on maintaining a broad collection of owned studios.
The latest closures add to earlier reductions in Netflix’s game development footprint. The company continues to view gaming as part of its broader entertainment strategy, but its approach now appears more selective as it adjusts where it commits development resources.