Netflix has recently laid off a number of employees at Oxenfree developer Night School Studio. The news was reported by website Game Developer, with Netflix declining to comment on the story. Reportedly, the studio's upcoming projects lineup hasn't been impacted, so it might be a relatively small number. Still, it's yet another instance of game industry layoffs. Just over the last handful of months, we've had to cover layoffs at Hi-Rez (twice, actually), Rocksteady, Activision Blizzard, Sony, Tequila Works, Riot Games, Warner Bros. Games Montreal, 11 bit studios, Deck Nine, Splash Damage, Reflector Entertainment, Ubisoft, Phoenix Labs, Crytek, and NetEase.
Netflix acquired Night School Studio in September 2021 for an undisclosed sum to bolster its gaming output. Almost two years later, the California-based developer launched Oxenfree II: Lost Signals. On Wccftech, the game earned an 8 out of 10 score from reviewer Ule Lopez:
Oxenfree 2 feels like it relies on its dialogue system a bit too much as its more exciting elements take a backseat. While the dialogue is still incredible, the appearance of these more unique sequences left me often asking where I would be able to find more of the unique time-altering puzzles and surreal visuals that also made it stand out over other games. The character writing is still as good as the first game, but it feels like more could have been done to make it stand above the first game.
Netflix made the news around three months ago because Mike Verdu, VP at GenAI for Netflix Games, talked about a big push to use AI technologies:
I am working on driving a "once in a generation" inflection point for game development and player experiences using generative AI. This transformational technology will accelerate the velocity of development and unlock truly novel game experiences that will surprise, delight, and inspire players.
I am focused on a creator-first vision for AI, one that puts creative talent at the center, with AI being a catalyst and an accelerant. AI will enable big game teams to move much faster, and will also put an almost unimaginable collection of new capabilities in the hands of developers in smaller game teams.
The controversy was that Netflix had just closed down its only triple-A game studio, which was working on a third-person action role-playing game for PC. This made it seem like the company was interested in 'replacing' workers with AI tech. Time will tell if that's truly the direction they are set on.
About the author: With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.
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