Netflix has unexpectedly shut down Boss Fight Entertainment, the game studio behind its popular mobile title “Squid Game: Unleashed,” as the streaming giant pushes forward with a major shift in its gaming strategy to attract global users and boost digital revenue.

The closure comes as Netflix’s internal gaming division undergoes restructuring under its new president, Alain Tascan, who joined the company in July 2024.

Despite strong engagement from mobile users and increasing interest in mobile games tied to Netflix originals, the company is now pivoting away from primarily mobile-focused development in favor of party games, narrative experiences, family titles and mainstream games that can also run directly on smart TVs.

This broader strategy aims to enhance subscriber retention and expand Netflix’s footprint in the gaming market, where online advertising and mobile gaming monetization continue to dominate industry revenue.

Boss Fight’s two titles — the “Netflix Stories” series and “Squid Game: Unleashed” — will remain available to subscribers. “Netflix Stories” had already halted new releases earlier this year, while “Squid Game: Unleashed” was promoted as a major success for the company shortly after its December launch.

The announcement stunned industry observers because “Squid Game: Unleashed” had been widely described by Netflix as a strong performer. The studio was acquired in 2022, making the shutdown particularly surprising given Netflix’s continued push to develop gaming content around its owned intellectual property — a strategy intended to reinforce its entertainment ecosystem and attract high-value streaming customers.

The move follows a similar decision last October, when Netflix shut down its AAA development arm, Team Blue, before it released any projects. That decision signaled the early stages of Netflix’s shift away from costly large-scale gaming development.

Boss Fight co-founder and CEO David Rippy confirmed the shutdown in a public statement to his team and industry colleagues, writing: “Hi everyone – well, word has gotten around quickly about Boss Fight’s closure. Thanks, everyone who reached out today. Rough news, for sure, but I’m very grateful for the time we had at Netflix. We worked with some awesome people and made many games that I’m very proud of, including Squid Game Unleased which hit #1 in 26 countries. You’ll see lots of Boss Fighters with similar posts. Please consider them if you have any open roles – they are outstanding people and true professionals through-and-through. As for Bill, Scott and me – we’re going to take a little breather before tackling whatever is next. Love to hear from you if there’s anything interesting going on, workwise or otherwise.”

As Netflix intensifies its efforts to compete not only in streaming but also in gaming — an industry tied closely to lucrative online advertising, mobile user acquisition and high-CPC entertainment traffic — the company is attempting to streamline its portfolio and focus on titles with wider, more sustainable engagement.

The shutdown marks another reminder that even successful games may not survive strategic realignment in today’s fast-moving digital entertainment market.