The independent game studio Night School Studio, known for its critically acclaimed narrative adventure game Oxenfree (released in 2016), was acquired by Netflix in 2021 as part of the streaming giant's foray into the gaming industry.

However, following the equally well-received release of Oxenfree II: Lost Signals in July 2023, unfortunate news has emerged regarding Night School Studio.  According to a report by GameDeveloper, citing anonymous former and current employees, Netflix initiated layoffs in January, with "an unspecified number of staff being informed their services were no longer required."

While the future plans of both Netflix and the affected employees remain uncertain, the report indicates that Netflix's downsizing will not impact the studio's existing product line. This suggests that Oxenfree and its sequel will likely remain available on the platform.

The closure of Night School Studio marks a setback for Netflix's gaming ambitions.  It raises questions about the long-term strategy of the streaming service in the gaming space, especially considering the positive reception of the studio's titles.  Further details regarding the reasons behind the closure and the future of the Oxenfree franchise are yet to be revealed.