Netflix is getting rid of another of its game studios by selling it back to its founders

2. Gaming

Developer Spry Fox will be independent, but Netflix still plans to publish its next game on mobile.

The developer of Cozy Grove and Alphabear is leaving Netflix. Spry Fox is being sold back to its original founders, Game File reports, and will continue to work on its upcoming "cooperative village life sim" Spirit Crossing as an independent company. Unlike other shuttered Netflix games studios Team Blue and Boss Fight Entertainment, Netflix will remain involved with the studio as Spirit Crossing's publisher on mobile.

As part of the arrangement, Spry Fox founders David Edery and Daniel Cook will be able to shop Spirit Crossing to other publishers for console and PC releases of the game. While reverting to being an independent studio is definitely a happier version of the typical studio closure story, it might not be without issues. Game File reports that layoffs at Spry Fox are still possible and the developer will need to find additional funding to continue long-term. Spirit Crossing may also need to be altered so that Spry Fox can continue to make money from the game after players purchase it.

Netflix acquired Spry Fox in 2022, a little over a year after it acquired Oxenfree developer Night School. Spry Fox released its first game for Netflix subscribers, a sequel to Cozy Grove, in 2024. The studio formally announced Spirit Crossing in March of this year, as an ambitious attempt to fuse the cozy life simulation elements of something like Animal Crossing: New Horizons with the online social experiences of MMOs like World of Warcraft or Final Fantasy XIV.

That pitch apparently no longer jives with Netflix's current game strategy, which changed when Epic Games' Alain Tascan took over from ex-EA executive Mike Verdu. Whereas Netflix Games under Verdu acquired studios, funded projects and licensed an eclectic collection of mobile games for Netflix subscribers, Tascan has refocused the company's games business around titles based on Netflix IP, social party games and known quantities, Game File writes. Spirit Crossing doesn't fit neatly into any of those categories, which might be one reason Netflix is parting ways with Spry Fox.

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