Netflix is shutting down two studios, including the developer behind the David Fincher and Zach Cregger-backed horror game “Unhinged,” which released less than two months ago.

The streaming service is closing “Unhinged” maker Night School Studio, which it acquired in 2021, and Moonloot, a Helsinki-based studio founded in 2022.

“We are incredibly grateful to the talented colleagues we’re saying goodbye to today,” a Netflix spokesperson told Variety Thursday. “We thank them for all their contributions to Netflix, and wish them the best.”

These new shutdowns are the latest in a series of moves that have whittled down Netflix’s internal game business, which now consists of Next Games, which is based in Helsinki, as well as a gaming team that works with external developers.

Over the past few years, Netflix has divested studios Spry Fox (which was sold back to its founders last December), Boss Fight (which was shutdown last October after releasing a “Squid Game” mobile title for the streamer), and the AAA-focused Team Blue (which was shuttered in 2024).

Under Netflix president of games Alain Tascan, who joined in his role at the end of 2024, Netflix’s gaming strategy is now focused on four key areas: kids (“Netflix Playground”), party (“Netflix Minigolf”), narrative (“Unhinged”) and mainstream (“FIFA World Cup: Launch Edition”).

Recently, Netflix has been expanding into games played on TVs using a phone as a controller, like “Unhinged” and “FIFA World Cup: Launch Edition.” Sources tell Variety the most internal excitement in the division surrounds monumentum for cloud games and kids games.

News of Netflix’s shutdowns of Night School Studio and Moonloot was first reported by GameFile.