Netflix has also acquired or spun-up a number of studios to support its gaming pipeline. The most recent additions were a mobile game studio in Helsinki, a new studio in southern California, and Cozy Grove developer Spry Fox. But with the closure of Blue, Netflix’s trend of expansion may be over as well as its grander AAA ambitions.

Netflix has shut down its Southern California-based video game studio, referred to internally as “Team Blue,” which had a specific focus on producing AAA games.

Netflix conducted a hiring spree to build the "Team Blue" AAA studio, and Tuesday they've announced its closure before they made a game.

Netflix has reportedly shut down its major AAA gaming studio which has led to a number of high-profile developers leaving the company. GameFile reports the company's Southern California game studio, which was known as team 'Blue',

Netflix has shut down its triple-A gaming studio set up in Southern California, leading to the exit of a number of high-profile developers from the company and sparking questions about its gaming ambitions.

Known as Team Blue, the studio had such talent as Halo's Joseph Staten, Overwatch's Chacko Sonny, and Sony Santa Monica's Rafael Grassetti.