Netflix Shuts Boss Fight Game Studio As It Bets On GenAI Amid Wavering Shares

With over 300 million paid memberships in over 190 countries, Netflix is one of the world's leading entertainment services, bringing its viewers creative, engrossing, and innovative TV shows and movies across a wide range of genres and languages.

At least that’s what the company’s website says about the globally renowned streaming platform.

“Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time,” reads its website.

At the same time, Netflix’s website also mentions gaming as an option that’s available on its platform, having diversified into the gaming space a few years ago.

Although the latest news of Netflix’s big push in the gaming sector comes with the shuttering of Boss Fight Entertainment, a gaming company it acquired in 2022 to broaden its portfolio. Boss Fight was the studio behind Netflix’s mobile game “Squid Game: Unleashed” and “Netflix Stories.”

The news was confirmed by David Rippy, the studio’s CEO and Co-founder, through a post on LinkedIn (where Rippy updated from CEO to xCEO).

“Rough news, for sure, but I’m very grateful for the time we had at Netflix. We worked with some awesome people and made many games that I’m very proud of, including Squid Game Unleased, which hit #1 in 26 countries,” read Rippy’s post, which also appealed to others to consider the company’s employees for open roles elsewhere.

Meanwhile, David Luehmann, Director of Game Development at the studio, also published a post on LinkedIn, saying, “After 10+ great years working at Boss Fight, the last few as part of Netflix, the time has come for the studio to close down. I am very proud of all the people, work, and games we've released. I wish you could see what we had cooking!”

Netflix initially forayed into gaming with a Stranger Things mobile tie-in game in 2017 and offered an interactive experience through Black Mirror: Bandersnatch in 2018, among others, but didn’t enjoy a full and formal launch until 2021 with the Netflix games division.

It took until earlier this month to bring its subscribers the ability to play video games on their smart TVs, where users (from one to eight players) would have to scroll to the ‘Games’ tab on their TV and use their phones as controllers. Available titles include LEGO Party!, Boggle Party, Pictionary: Game Night, Tetris Time Warp, and Party Crashers: Fool Your Friends.

“We’re creating a completely new way to play games—one that’s as easy as streaming a show on a Friday night. All you’ll need is Netflix and your phone to experience a whole new level of fun on Netflix with instantly recognizable games,” said Netflix in a news release announcing the new games.

Interestingly, the shuttering of the studio comes just after Netflix revealed its first-ever video games available on users’ TVs.


At the same time, Netflix revealed through a letter to its investors that it plans to make major strides with the use of generative AI (GenAI).

“Netflix has a rich history of leveraging cutting-edge technology to deliver a best-in-class entertainment experience for members,” read an excerpt from the letter. “We believe Generative AI presents a significant opportunity for us to deliver benefits to our members, creators, and business.”

In addition to “leveraging GenAI to further enhance the member experience by improving the quality of our recommendations and content discovery features,” Netflix plans to empower “creators with a broad set of GenAI tools to help them achieve their visions and deliver even more impactful titles for members.” This will be supported by its recently released production guidance for creators.

Netflix also said it was beta testing a conversational search experience that would allow users to explore and discover titles, forming one example of GenAI enhancing member experiences.

As for creators, the streaming giant cited filmmakers using GenAI for movies such as Happy Gilmore 2 (to de-age characters in a flashback scene) and TV shows such as Billionaires’ Bunker, where GenAI was used during pre-production to explore wardrobe and set designs.

“Given our significant data assets and at-scale products and business processes, we are very well positioned to effectively leverage ongoing advances in AI,” Netflix added.

Just over two months ago, Netflix faced criticism for swapping real archival photos with AI-generated images in the true-crime documentary What Jennifer Did.

The details of the move came as part of its financial results for the quarter (Q3 2025) ended September 30, 2025, which reportedly didn’t impress investors. Its shares, which had climbed 39% this year, ended up falling 5.6% in after-hours trading.

The company’s shares remain low, dropping from $1,241 on October 21 to $1,094 on October 24 closing.

This fall came despite strong returns, which included revenue for the quarter growing 17%—in line with its forecast. Furthermore, its engagement remains high, as Netflix hit its highest quarterly view share ever in the U.S. and the U.K. since Q4 2022, which grew 15% and 22%, respectively.

However, its forecasted operating margin of 28% was below the expected 31.5% due to an unexpected expense from a Brazilian tax dispute. Had it not been for that expense, the company says it would have surpassed its Q3 2025 operating margin forecast.

Netflix forecasts 16.7% year-on-year growth for Q4 2025, while also listing upcoming titles, which are expected to boost its viewership.

Do you think Netflix’s move to enter the gaming sector will help it outshine competitors such as Disney, Amazon Prime, HBO Max, and others?

Let us know in the comments below!