Netflix Reportedly Sells Spry Fox Back to Founders as Company Shifts Gaming Strategy

Netflix is making another significant change to its gaming division, with the company reportedly selling Spry Fox back to its original founders. Spry Fox is said to continue developing Spirit Crossing, with Netflix still set to publish the 2025 mobile release. The move marks a shift for a studio Netflix acquired in 2022, arriving as the company reassesses its long-term gaming plans and restructures teams to fit its updated strategy. Netflix has yet to officially confirm this move.

Spry Fox Returns to Independent Status Under Co-Founders

Netflix is selling Spry Fox back to its original founders, according to a report from Game File (via Engadget). The Seattle-based studio, acquired by Netflix in 2022, will return to independent status under co-founders David Edery and Daniel Cook. 

There could be possible layoffs at Spry Fox, and the studio may need new funding to support long-term development. Netflix did not respond to the publication's request for comment regarding its decision to part ways with Spry Fox.

Spry Fox was working on Spirit Crossing as part of Netflix's internal game lineup, and the report says the studio will continue working on the title after the split. Netflix will remain the publisher for the mobile release, planned for 2025, while Spry Fox can seek additional partners for console and PC versions. Spirit Crossing is still in alpha testing and is described as a cooperative village life sim focused on building community, with more than four years of development behind it.

According to the report, the decision appears to reflect broader changes in Netflix's games strategy. The streaming company has scaled back parts of its internal operations, including the closure of Team Blue in 2023. That team had been assembled to build a large, multi-platform game, but no longer aligned with Netflix's updated priorities by mid-2024.

The shift reportedly began after Alain Tascan took over Netflix's games division in late 2024. Under the new direction, Netflix is focusing on games tied to its own franchises, party titles, and projects with more predictable performance. Spirit Crossing, an original IP blending elements of MMOs and life-simulation games, no longer fit within this approach, according to the report.

Spry Fox, founded in 2010, previously released titles such as Triple Town, Alphabear, and Cozy Grove. After joining Netflix, the studio released Cozy Grove: Camp Spirit in 2024 as a Netflix Games title.

Netflix's games division has undergone several changes in recent years. It has removed some titles, closed internal teams, and shifted its catalogue toward party games, narrative titles, and projects connected to Netflix IP. The company recently announced new games for TV and mobile, including PAW Patrol Academy, WWE 2K25, and Red Dead Redemption.