Netflix has reportedly shuttered its ambitious AAA studio, Team Blue. The studio previously employed big names, including veterans of Halo, Overwatch and other major franchises.

The report, which was released by Game File on October 22, claimed that the company’s Southern California studio, known internally as “Team Blue,” has shuttered. It was supposed to be the streaming giant’s ticket into the AAA market, with the studio developing an ambitious multi-platform title that would separate Netflix from the mobile video game industry. It has made significant efforts to achieve this through Team Blue, hiring high-profile veterans such as former Overwatch executive producer Chacko Sonny and former Halo creative director Joseph Staten, who even left Xbox to join Netflix as the new creative lead of its AAA venture.

Santa Monica veteran and God of War art director Rafael Grassetti has also joined Netflix's Southern Cali studio, though all of those developers have reportedly left the company following Team Blue's closure this month. It seems to be a major sign of Netflix's reluctance to enter the AAA market with original IP, a market already (over)saturated with huge, big-budget titles, both franchises and originals.

Netflix previously reported that it had over 80 titles in development, implying that the company was committed to this departure from streaming and gaming. However, as we can see from this decision, it’s unclear what Netflix intends to achieve in the future. It’s safe to say that it’s probably not the high-budget, multi-platform AAA domain already dominated by giants like Microsoft and Sony.