Netflix has closed the studio behind its mobile game “Squid Game: Unleashed”, reflecting a shift in its strategy for the video gaming unit. The closure was confirmed by the studio’s co-founder and former CEO, David Rippy, in a LinkedIn post on Thursday. “Rough news, for sure, but I’m very grateful for the time we had at Netflix,” Rippy wrote.

The streaming giant acquired Boss Fight Entertainment in 2022 to expand its gaming portfolio as part of a broader effort to diversify revenue through video games and advertising. David Luehmann, a director of game development at Boss Fight, also shared the news on LinkedIn, noting that after more than a decade at the studio, including several years under Netflix, the time had come to close. Despite the closure, Boss Fight’s games, including “Netflix Stories” and “Squid Game: Unleashed”, will remain available on Netflix’s platform. The company has not commented further.

Netflix, which appointed Alain Tascan as president of games last year, is now focusing on party, narrative, kids, and mainstream games. Co-CEO Greg Peters highlighted “Squid Game: Unleashed” during the company’s earnings call as an example of the type of narrative-driven games Netflix aims to develop based on its original shows, signaling a more targeted approach in its gaming strategy. The move underscores Netflix’s ongoing pivot in its gaming ambitions, prioritizing content aligned closely with its streaming IP and audience preferences while winding down studios that no longer fit its refined direction.