Netflix Closes Night School, 2K Launches Small Axe

Aug 14, 2026

Netflix is pulling back from in-house game development by closing Oxenfree maker Night School Studio and Moonloot Games, while 2K starts Small Axe Studios to pursue a new blockbuster sports franchise The VergeGame DeveloperGamesIndustry.biz. Pokémon Pokopia and Sonic Frontiers both pass five million sales, and Call of Duty: Modern Warfare 4’s beta is set to include a campaign mission for the first time in the series EurogamerNintendo LifeIGN.

Netflix Shuts Down Oxenfree Developer Night School Studio

Netflix is closing two game studiosNetflix to shut down two more game studiosThe VergeGame File

Netflix is shutting down Night School Studio, the Los Angeles developer behind Oxenfree and Oxenfree II: Lost Signals, alongside Finnish studio Moonloot Games The VergeNintendo LifeGame Developer. The closures come as Netflix reduces its internal game teams and shifts more attention toward party games and titles streamed to TVs The VergeGame FileGame Developer.

Netflix acquired Night School in 2021, and the studio’s latest release, Unhinged, arrived only six weeks before the shutdown The VergeVGC. Moonloot was founded in 2022 and had not published a game before its closure Nintendo Life. Netflix says the restructuring will allow its Games business to operate more strategically and efficiently Game Developer.

2K Launches Small Axe Studios to Build a New Sports Franchise

2K establishes AAA sports developer Small Axe StudiosGamesIndustry.biz

2K has launched Small Axe Studios, a Vancouver-based AAA development team tasked with making the publisher’s “next blockbuster sports franchise” GamesIndustry.bizThis Week in Video GamesVGC. The studio includes EA veterans with experience on FIFA, Madden NFL, and NHL, and is led by a former FIFA executive producer This Week in Video GamesEurogamer.

The move positions 2K to challenge EA Sports FC’s relatively uncontested football position, although the publisher has only described Small Axe’s project as a future sports franchise EurogamerGamesIndustry.biz.

Compulsion Games Takes Over Steam Publishing for South of Midnight

South of Midnight is now self-published on Steam after Compulsion Games cut ties with MicrosoftCompulsion Games becomes publisher of South of Midnight on Steam, suggesting departure from Xbox amid major restructuring is now completeVGCEurogamer

Compulsion Games now lists itself as the Steam publisher of South of Midnight, replacing Xbox Game Studios on the store page VGCEurogamerIGN. The change suggests the studio’s separation from Xbox is complete after Microsoft’s restructuring spun Compulsion out independently alongside three other studios amid thousands of layoffs EurogamerIGN.

Pokémon Pokopia and Sonic Frontiers Pass Five Million Sales

Nintendo announces Pokémon Pokopia has sold over 5m copies, meaning that roughly one in four Switch 2 users now owns the gameIt's Official, Sonic Frontiers Has Now Sold More Than Five Million CopiesEurogamerNintendo Life

Pokémon Pokopia has sold more than five million physical and digital copies worldwide in just over four months, Nintendo and The Pokémon Company announce Eurogamer. That puts the Switch 2 title at roughly one owner in every four Switch 2 users Eurogamer.

Sega also confirms Sonic Frontiers has passed five million copies since its 2022 launch on Switch and other platforms, with the company celebrating the milestone through a free Sonic Adventure 2 gift Nintendo LifePush Square.

Call of Duty: Modern Warfare 4 Beta Adds a Campaign Mission

Call of Duty: Modern Warfare 4's PS5 Beta Includes Campaign Mission for the First TimeXbox Confirms Call of Duty: Modern Warfare 4 Beta Will Feature Single-Player Campaign Mission for the First TimePush SquareIGN

Call of Duty: Modern Warfare 4’s upcoming PS5 beta includes a single-player campaign mission, the first time a Call of Duty beta has offered one Push SquareIGN. The Entrenched level joins multiplayer modes and maps, as well as the new Warzone Resurgence map Zodiac Push Square.

The pre-release tests take place this month, giving players an early look at both the campaign and multiplayer package before launch IGN.

End of Friday's overview · 5 stories from 10 outlets