Netflix has shut down its Southern California game studio

Netflix's ambitious gaming expansion into the AAA market seems to have hit a roadblock. The company has reportedly shuttered its Southern California studio, which was working on an action RPG for PC. 

The company had hired former Overwatch executive producer Chacko Sonny as the head and wooed industry veterans Joe Staten (writer and creative director of Halo and Destiny) and Rafael Grassetti (studio art director at Sony Santa Monica studio). 

According to a report from Game File, Netflix has shut down the studio, and the three big hires are no longer at the company. 

As reported by The Verge, Netflix hired Alain Tascan as the new president of its gaming division in July this year and moved former head Mike Verdu into a new role. Tascan previously served as the VP of game development at Epic Games.

Business Insider reported that Tascan conducted layoffs in the gaming division last week, and sources from Netflix told them that under 35 jobs were cut during the layoffs. 

Despite the closure of the studio and presumably the AAA project, Netflix remains committed to its gaming division and has been releasing mobile games based on its popular shows like "Too Hot To Handle" and "Squid Game" to name a few.