Netflix shut down a gaming studio called Blue before its first AAA - or popular, high-profile - game could be released, according to outlets Game File and The Verge.

The Verge noted that Netflix had confirmed the news but was keeping the news low-profile.

Along with the studio being closed down, gaming industry veterans Chacko Sonny, Rafael Grassetti, and Joseph Staten will not be part of Netflix, reported Game File. Blue had hired the gaming experts from 2022 onwards.

While Netflix has been offering games and signing deals with gaming companies for around three years now, the fate of Blue raises questions about the future of Netflix’s gaming scene and whether the shutdown signifies the company is taking a step back.