Illustration by Nick Barclay / The Verge

The first cracks are starting to show in Netflix’s push into gaming. First reported in Game File and confirmed by Netflix, the streaming company has quietly closed of one of its studios, the first in the three years since the company began its foray into gaming.

According to Game File, the shuttered studio was known as Blue. In 2022, Netflix announced it hired former Overwatch executive producer Chacko Sonny to run the studio. Since then, Blue had brought on a number of game industry veterans with experience working on high profile franchises including Halo and God of War. Reportedly, Blue was developing a multi-platform AAA game for an original IP but was closed before the game could be announced or released.

Netflix has released a…

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