Netflix Taps AI to Rebuild Gaming Strategy After Studio Setbacks

Netflix is seeking a director of generative AI for games, signaling a strategic pivot toward artificial intelligence as the streaming company steps back from traditional game development.

The newly created role will centralize oversight of AI across Netflix's gaming operations, from internal development tools to in-game systems and experimental gameplay experiences. The position requires at least a decade of industry experience and calls for collaboration with studios, platform teams and senior leadership.

The move comes after Netflix shuttered several conventional studio efforts. Team Blue, an ambitious triple-A game studio launched in 2022, closed without releasing a title. Night School Studio, acquired for its critically acclaimed game Oxenfree, underwent layoffs as Netflix tightened spending across its gaming division.

Netflix Gaming Pivot Follows Industry-Wide Shift to AI

Netflix's three-year gaming experiment has seen notable leadership changes. Mike Verdu, recruited from Electronic Arts Inc. and Meta Platforms Inc. in 2021 to lead game development, helped establish internal studios before shifting to AI-focused projects and ultimately leaving the company.

The new director position appears designed to accelerate that transition, exploring alternatives to the traditional studio model that has proven costly and unpredictable for Netflix.

The timing reflects broader industry turbulence. In September, Electronic Arts announced a $55 billion take-private deal led by a consortium including Saudi Arabia's Public Investment Fund. Earlier in 2025, EA eliminated roughly 300 positions, including 100 at Respawn Entertainment, after canceling a Titanfall project.

Rising production costs have squeezed margins industrywide. Microsoft Corp. recently raised Xbox Game Pass subscription prices by 50%, while numerous studios have announced layoffs despite robust consumer demand.

Netflix is betting that its streaming infrastructure, combined with AI development tools, can create more efficient pathways to game production. Success could reshape not only Netflix's gaming ambitions but also establish new models for interactive entertainment development across the industry.