Netflix shut down its own gaming studio then announced plans to focus on GenAI, which will build games in the future
Netflix’s recent decision to close its internal gaming studio in favor of using artificial intelligence has sparked controversy. Is this a foolish move?
Netflix closes Blue Studio, shifts to AI for game development
We all remember The Terminator, right? The film taught us that, while AI can enhance work and life, fully replacing human jobs can lead to unintended consequences. If you haven’t seen it, it’s worth a watch on Netflix—especially for Netflix employees!
Back in October, Netflix shut down its internal gaming studio, Blue, and has now announced plans to replace the team’s work with AI technology.
Led by former Blizzard executive Chako Sonny, Blue was disbanded before releasing any of the AAA games it had been developing. Despite this, Netflix promised it hadn’t abandoned gaming. Until now, its gaming success has come from porting popular third-party games to its platform—like the GTA franchise. Now, however, the company is shifting in a bold new direction.
According to Netflix’s new VP of GenAI for Games, Mike Verdu, this shift is about tackling “the next challenge” in gaming. In a LinkedIn post, he explained:
I am working on driving a "once in a generation" inflection point for game development and player experiences using generative AI. [...] 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.
Some feel this is a lofty way of saying, “the machine will do it.” It’s unclear why integrating AI into the existing game studio wasn’t considered, but it seems Netflix has chosen to focus solely on generative AI, rather than exploring a hybrid approach.
Verdu sees generative AI as a tool to unlock the “unlimited potential and rapid pace of innovation” in gaming. He describes it as a transformative force, even though “many look at this technology with fear.”
As expected, Verdu’s post received heavy criticism from people upset with the decision.
What are your thoughts on Netflix’s strategy and the role of GenAI in the gaming industry? Share your views in the comments!
