After Netflix’s hiring spree to build a AAA gaming studio codenamed “Team Blue,” a report on Tuesday announced the studio’s closure and the departure of its developers.
Today, Totilo’s Game File revealed that Netflix has shut down its AAA studio in Southern California, Team Blue. This follows reports that the team was working on a major project intended for multiple devices. Former Overwatch executive producer Chacko Sonn and veteran Halo creative director Joseph Staten (known for Halo 3: ODST) have both left the company as a result of the closure.

The streaming service announced the formation of the studio in April 2023, when they initially hired Staten to lead “a brand-new AAA multiplatform game and original IP.” Interestingly, Staten posted a hiring lead for the team just a month ago, suggesting that even the studio leads were unaware of Netflix’s plans to close the studio. Staten’s LinkedIn page still lists him as “Creative Director, Netflix Games,” with the header, “Building a brand-new AAA multiplatform game and original IP.”
Other big names were attached to the project, including Overwatch producer Chacko Sonny and God of War art director Rafael Grassetti from Sony Santa Monica. Hopes were high that this ‘dream team’ of developers would create something new and original for Netflix, but the studio has now shuttered.

In April 2023, Staten told IGN, “So today, I’m thrilled to announce that I’ve joined Netflix Games as creative director for a brand-new triple-A multiplatform game and original IP. Let’s go!” But now it seems fans won’t ever see the work from Team Blue.
At the time of this posting, Staten, Sonny, and the other developers involved have yet to make public statements, and Netflix has not provided any feedback on the studio’s closure.