Netflix’s gaming division has taken another major hit as SpryFox, one of its early internal studios, is officially parting ways with the streaming giant. Despite this exit, Netflix says it will continue supporting SpryFox’s upcoming MMO social simulation game, Spirit Crossing—a title many mobile gamers have been waiting for since its reveal.
According to a recent report by Stephen Totilo from Game File, SpryFox has been sold back to its original founders, effectively making the studio independent once again. This marks another significant shift in Netflix’s gaming strategy, which has seen a mix of expansion, consolidation, and shutdowns over the past few years.
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In this detailed report, we break down why SpryFox left, what’s happening to Spirit Crossing, how this affects Netflix Games, and what the future may look like for the platform.
SpryFox Leaves Netflix After Two Years — What Went Wrong?
Netflix acquired SpryFox in October 2022, adding the award-winning indie studio to its lineup of internal game teams. The studio had been quietly developing a major social MMO project, internally known as Project Friendship.
However, despite steady development progress, SpryFox is no longer under Netflix’s ownership.
The founders have taken the studio independent again, suggesting:
- Possible budget limitations within Netflix’s gaming division
- A need for external partnerships
- Creative or structural differences
Even after the split, Netflix remains closely tied to the studio because Spirit Crossing is still planned to launch as a Netflix title, at least initially.
What Is Spirit Crossing? Netflix’s Social MMO Explained
Unveiled at GDC 2025, Spirit Crossing is positioned as one of the most ambitious games created for Netflix Games so far. It is described as:
“A cooperative village life simulation designed to promote friendship, kindness, and community.”
Key Features of Spirit Crossing
- MMO-style social gameplay
- Cozy village-building mechanics
- Emphasis on cooperative play and community creation
- Unique art style and world set “between worlds”
The game is currently in Early Access Alpha on the Google Play Store and has already crossed 100,000 downloads, showing strong early interest.
Netflix and SpryFox have also confirmed that a public beta is planned for 2026, indicating that the project is still far from full release.
Will Spirit Crossing Come to Other Platforms?
Since the studio is no longer exclusive to Netflix, there is now a real possibility that Spirit Crossing may later expand to more platforms, including:
- Mobile (outside Netflix)
- PC
- Nintendo Switch
- Steam
- Consoles
Netflix retains some publishing involvement, but SpryFox’s independence means the game could reach a much wider global audience, similar to how some timed exclusives operate.
Why Is Netflix Losing Its Early Acquired Studios?
SpryFox is not the first studio to leave or shut down under Netflix’s gaming umbrella.
In fact, Netflix has been struggling to maintain momentum after a massive early push into mobile games.
Recent Netflix Game Studio Changes
- Boss Fight Entertainment, known for Netflix Stories and Squid Game: Unleashed, shut down completely earlier in 2025.
- Dungeon Boss: Respawned, one of its earlier projects, was discontinued shortly after.
- Team Blue, a large California-based studio, dissolved after its unannounced project stalled.
- Next Games, the developers behind Stranger Things: Puzzle Tales, also saw one of its major titles removed.
- Night School Studio, creators of OXENFREE II, has not announced its next project yet.
Netflix once had bold ambitions to grow a network of internal studios, but the constant closures and restructuring suggest major challenges in sustaining these teams.
MoonLoot Games and Netflix’s Remaining Studios
Despite multiple exits, Netflix still operates several internal studios, including MoonLoot Games in Helsinki. The studio is:
- Actively hiring
- Working on an unannounced project
- Positioned as a key part of Netflix’s gaming future
Netflix also owns smaller teams working on social games and interactive experiences, which recently launched as part of its Netflix Stories expansion.
Netflix’s Changing Gaming Strategy
Netflix originally jumped into the gaming space with a broad mobile-first strategy, offering free titles to all subscribers. Over time, many of the biggest games:
- Were removed
- Had updates canceled
- Were never fully launched
The next wave of removals is scheduled for December, with over a dozen games set to leave the platform. This indicates a major shift toward:
- Quality over quantity
- More interactive TV tie-ins
- Fewer but more polished internal projects
- Greater reliance on external studios rather than full acquisitions
SpryFox leaving Netflix appears to be part of this larger restructuring.
What This Means for Gamers and Spirit Crossing Fans
For players waiting for Spirit Crossing, there is good news:
✔ The game is not canceled
✔ Netflix has confirmed ongoing support
✔ Development will continue under SpryFox
✔ A 2026 beta is still planned
The studio may also secure new funding partners, which could help expand the game’s scope and release plans.
For Netflix, however, the departure of SpryFox highlights ongoing challenges in building a sustainable game development ecosystem—especially at a time when competition in mobile and indie gaming is at its peak.
Conclusion
Netflix losing SpryFox marks another significant shift in its long-term gaming strategy, but fans of Spirit Crossing can stay optimistic. The game is still in development, still supported by Netflix, and may even reach more platforms as SpryFox gains independence.
As Netflix continues to restructure its gaming business, the focus now appears to be on selective projects, strategic partnerships, and long-term IP integration—rather than rapid studio expansion.
