Netflix is closing Oxenfree developer Night School Studio and Moonloot as the company changes its priorities for its growing games division.

The streaming company confirmed the closures in a statement to Game File, saying it is restructuring its gaming operations around a smaller number of priorities. Those include kids games, party games, story-driven titles, and projects built around mainstream entertainment properties.

Netflix also confirmed that it is cutting jobs within its internal game development teams, although the company did not disclose how many employees are affected.

“We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities,” a Netflix spokesperson said.

The company also thanked the employees affected by the changes, recognizing their contributions and wishing them well.

The closure of Night School Studio is particularly notable given the developer's history. Founded in 2014, the studio became best known for Oxenfree, its supernatural adventure game released in 2016.

Oxenfree followed a group of teenagers who encounter strange supernatural events while visiting an abandoned island. Its distinctive dialogue system, atmospheric presentation, and focus on character relationships helped it stand out among narrative adventure games.

Night School later released Oxenfree II: Lost Signals in 2023, expanding on the original game's story while introducing a new group of characters.

The studio also developed Afterparty, a 2019 adventure game about two recently deceased friends who find themselves in Hell and attempt to drink their way past Satan to return to the living world.

More recently, Night School released Unhinged, a mobile game for Netflix in June. The game features voice performances from Sadie Sink, known for her roles in Stranger Things and the Spider-Man franchise.

Moonloot had a much shorter history. Founded in 2022, the studio was developing an Animal Crossing-style life simulation game but never released a title before Netflix shut it down.

The closures reflect a broader change in Netflix's approach to game development. The company spent several years building up its own internal development teams and acquiring studios, but has increasingly moved toward working with outside developers and focusing on more accessible gaming experiences.

That strategy has also included projects tied to major entertainment properties and simpler games designed to appeal to a wider audience.The latest closures suggest Netflix is now taking a more selective approach to its internal studios rather than continuing to expand its development operations.

For fans of Night School's games, the decision brings an end to one of the more distinctive studios in Netflix's gaming lineup. Whether the Oxenfree series continues elsewhere remains unclear.