What Happened to Spry Fox
Netflix has officially sold Spry Fox back to its original founders David Edery and Daniel Cook. The move marks another significant retreat from Netflix’s gaming division, which once housed six internal studios but is now down to three. Spry Fox was acquired by Netflix in October 2022 as part of the streaming giant’s aggressive push into gaming, but after roughly three years under Netflix’s roof, the indie studio is returning to independence.
This isn’t a shuttering like some other Netflix gaming initiatives. Netflix will continue as the publisher for Spry Fox’s upcoming game Spirit Crossing on mobile platforms. However, Spry Fox now has the freedom to shop Spirit Crossing to other publishers for console and PC releases, giving the game a much wider potential audience beyond Netflix subscribers.
The Timeline: From Acquisition to Independence
Spry Fox’s journey with Netflix tells the story of the streamer’s shifting gaming strategy. Back in 2022, Netflix was throwing money at the gaming industry, acquiring studios at a rapid pace. The company believed it could build a robust gaming portfolio to compete with mobile and indie gaming markets. Spry Fox, known for beloved titles like Cozy Grove, Triple Town, and Alphabear, seemed like a perfect fit for Netflix’s portfolio of cozy, creative games.
The studio released Cozy Grove: Camp Spirit in 2024 as its first major title under Netflix. In spring 2025, Spirit Crossing was announced with much fanfare at the Game Developers Conference. The game promised to combine the cozy life simulation of Animal Crossing with the social MMO elements of World of Warcraft and Final Fantasy XIV.
However, leadership changes signaled trouble ahead. Mike Verdu, Netflix’s VP of games, moved to the generative AI division in June 2024 before departing in March 2025. Alain Tascan, a former Epic Games executive, took over the gaming division and immediately began reshaping Netflix’s gaming strategy.
Why Netflix Is Backing Away from Gaming
Netflix’s gaming pivot didn’t happen in a vacuum. The company has been quietly reassessing its entire gaming strategy, and the numbers suggest why. In June 2024, Netflix shut down Team Blue, its AAA studio in California. The company also reduced staff at Night School Studio, another acquisition from 2021. By 2025, Netflix announced that six previously disclosed games, including three projects from Klei Entertainment, would not launch on its platform.
Despite gaming downloads surpassing 210 million as of September 2024, Netflix determined that its gaming division wasn’t generating the returns the company needed. The shift suggests Netflix is focusing on quality and subscriber retention rather than aggressive expansion. This explains why recent leadership has been willing to divest studios rather than continue funding experimental projects.
What This Means for Spirit Crossing
The good news for Spirit Crossing fans is that the game isn’t being cancelled. Netflix is still committed to publishing the mobile version of Spirit Crossing in 2025. What changes is that Spry Fox now has more autonomy to adapt the game for other platforms and find additional publishers.
However, challenges remain. Layoffs at Spry Fox are still possible, and the studio will need to secure additional funding to continue development long-term. Spry Fox may also need to adjust the game’s monetization strategy to make money beyond the Netflix partnership, especially if the game launches on other platforms where Netflix’s no-ads, no-in-app-purchases guarantee doesn’t apply.
The upside is that Spirit Crossing could reach a much broader audience. PC, console, and other mobile platforms now have the potential to host the game, making the ambitious MMO project viable in ways it might not have been within Netflix’s narrower gaming strategy.
Netflix’s Gaming Retreat by the Numbers
| Year | Number of Studios | Status |
|---|---|---|
| 2022 | 6 studios | Aggressive expansion phase |
| 2024 | 6 studios | Leadership transition begins |
| 2025 (Current) | 3 studios | Significant consolidation |
What’s Left of Netflix Games
After Spry Fox’s departure, Netflix’s internal gaming division has been cut roughly in half. The company now operates three in-house studios instead of six. This consolidation suggests Netflix is taking a quality-over-quantity approach, focusing on fewer but potentially more successful projects.
The streaming giant hasn’t abandoned gaming entirely. Netflix remains interested in the sector, but the company appears to be recalibrating its approach. Rather than acquiring multiple studios and funding speculative projects, Netflix is likely to be more selective about which games and developers it invests in.
Frequently Asked Questions
Is Spirit Crossing cancelled?
No. Netflix is still publishing Spirit Crossing on mobile platforms in 2025. Spry Fox can now also shop the game to other publishers for console and PC releases.
Will Cozy Grove be affected?
Cozy Grove: Camp Spirit was already released on Netflix. As an independent studio, Spry Fox may continue supporting this title, but that depends on their new business structure and funding situation.
Why is Netflix getting out of gaming?
Netflix isn’t completely exiting gaming, but it’s being more strategic. The company determined that rapid expansion wasn’t generating the subscriber value it expected. New leadership has refocused the division on fewer, potentially higher-quality projects.
What will happen to Spry Fox employees?
Reports suggest layoffs at Spry Fox are possible as the studio transitions to independence. However, the studio hasn’t announced specific workforce changes yet.
Can Spirit Crossing be published on PlayStation, Xbox, or PC?
Yes, that’s the whole point of the buyback. Spry Fox can now negotiate with publishers for console and PC versions of Spirit Crossing, something that wasn’t possible while the studio was owned by Netflix.
When will Spirit Crossing release on mobile?
Spirit Crossing is scheduled for 2025 on mobile platforms via Netflix. Exact release dates haven’t been announced.
Conclusion
Netflix’s decision to sell Spry Fox back to its founders reflects a broader recalibration of the streaming giant’s gaming strategy. What started as an aggressive expansion into gaming has become a more measured, strategic approach. The good news is that games like Spirit Crossing now have a better shot at reaching wider audiences beyond Netflix’s subscriber base.
For Spry Fox, independence offers creative freedom and platform flexibility but also brings uncertainty around funding and long-term viability. For Netflix, the consolidation signals a shift away from being a major game publisher toward a more selective gaming strategy. Whatever happens next, Spirit Crossing’s journey from Netflix exclusive to multi-platform possibility suggests that sometimes less control can mean more opportunity.