Netflix announces AI gaming venture, days after shutting down an internal development studio

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Generative AI is top of the agenda for Netflix and its games arm, with news of the venture emerging days after 35 people lost their jobs at the company.


In a sign of the times, Mike Verdu, who previously had ‘vice president of Netflix Games’ on his business cards, has changed roles. Verdu’s new title is vice president for genAI for games – something he announced himself on LinkedIn (via VentureBeat). In his place, Alain Tascan will take over his old position as Netflix Games VP.

In a lengthy statement on the job-centric social media platform, Verdu said that his new role is reflective of Netflix’s investment in generative AI in order to “accelerate the velocity of development and unlock truly novel game experiences.”

“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,” Verdu says. “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 announcement comes mere weeks after Netflix Games shut down Team Blue, an internal development studio founded in 2022. At the time, it was said that the studio would be working on a “brand-new triple-A multi-platform game and original IP.” The studio had enough funding to attract some considerable industry talent, including Joseph Staten, a veteran of the Halo franchise, who joined in Team Blue 2023.

“In my work life, there’s nothing I love more than collaborating with others to build worlds filled with iconic characters, deep mysteries, and endless adventures,” Staten wrote on Twitter/X at the time. “So today, I’m thrilled to announce that I’ve joined Netflix Games as Creative Director for a brand-new AAA multiplatform game and original IP. Let’s go!”

Just over a year later on the 22nd October 2024, Netflix closed the Los Angeles-based studio, resulting in the loss of around 35 jobs. Team Blue’s existence was so brief that it never released a game – nor did word emerge of exactly what it was working on before its closure.

Verdu, an industry veteran of some 30 years or more, didn’t mention Team Blue in his LinkedIn post. Instead, he expressed his excitement about the opportunities AI represents, which he suggests will transform the industry in a way that hasn’t been seen since his career began in the 1990s.

“Pay no mind to the uninformed speculation in the media about the changes in Netflix Games,” Verdu writes. “What you’ve seen over the last several months was actually a planned transition. And yes, I am completely delighted to be back out on the frontier, trying to put a dent in the universe.”

Our thoughts are with the employees at Team Blue, and any others who have or will soon be affected by this “planned transition.”

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