Netflix Inc. (NASDAQ:NFLX) is winding down Boss Fight Entertainment, the studio behind the hit game "Squid Game: Unleashed," as the streaming giant refocuses its gaming strategy.
Studio Closure Confirmed By Leadership
The shutdown was confirmed by Boss Fight co-founder and former CEO David Rippy in a LinkedIn post on Thursday. Netflix acquired the studio in 2022 as it looked to ramp up its mobile game offering.
"Rough news, for sure, but I'm very grateful for the time we had at Netflix," Rippy wrote.
David Luehmann, a director at the studio, added, "After 10+ great years working at Boss Fight, the last few as part of Netflix, the time has come for the studio to close down."
Despite the closure, both "Squid Game: Unleashed" and "Netflix Stories" will remain available on its platform, reported Reuters.
Netflix's Broader Gaming And Revenue Strategy
Netflix has been trying to diversify revenue through gaming and advertising. In gaming, the streaming giant is shifting its strategy to focus on party games, narrative games, kids’ games, mainstream games, and more games on TV.
During its third-quarter earnings call, Co-CEO Greg Peters highlighted "Squid Game: Unleashed" as an example of the kind of narrative-focused games Netflix wants to produce based on its original shows.
Netflix reported third-quarter revenue of $11.51 billion, up 17.2% year-over-year, slightly below the Street estimate of $11.514 billion and earnings per share of $5.87, versus an expected $6.97.
For the fourth quarter, the company projects $11.96 billion in revenue, driven by higher membership, increased pricing, and expanded ad revenue.
Price Action: Netflix shares declined 1.70% during Friday's session and slipped an additional 0.11% in after-hours trading, according to Benzinga Pro.
Benzinga's Edge Stock Rankings show that NFLX demonstrates a strong long-term price trend but exhibits weakness in the short and medium term. More detailed performance insights are available here.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
