Despite continued optimism among top management about the potential of video games, Netflix is shuttering its AAA game studio in Southern California. The move, first reported by GameFile, was confirmed to Deadline by a source familiar with the closure.

From the moment it was announced that Netflix had hired a team of former Blizzard, Bungie and Sony developers to create a AAA game, it felt too likely that little or nothing would come of it. Non-gaming companies deciding to try to grab a slice of the giant pie by spending money to recruit big names often seems to end this way (although Amazon is rather noticeably countering this right now).

Netflix has reportedly shut down one of its video game studios that was led by former devs from Blizzard, Halo, and Sony after just two years, despite plans to create big-budget productions to challenge some of the behemoths of the industry.