Game labeled success but developer laid off 85% of staff

When Netflix rolled out its officially licensed FIFA World Cup game in June, it was an ambitious move into the world of interactive entertainment. While the launch didn’t immediately capture the critical acclaim some hoped for, internal management later celebrated it as one of the company’s successful cloud gaming releases.

However, behind the glossy release numbers, the reality for the development studio experienced significant turbulence. Refactor Games, the team responsible for the title, had to make drastic cuts, enacting a mass layoff that affected the majority of its staff.

Cofounder Nathan Burba revealed that approximately 85% of the studio’s workforce was let go—roughly 80 people in total. This difficult decision followed a major shift in financial backing; the studio’s co-owner, Delphi Interactive, reportedly pulled funding after the June launch.

The impact on the developers was immediate and stark. Affected staff were reportedly notified on Friday, July 31st, but the news came without severance pay, leaving a difficult situation for those who had poured their creative energy into the project.

The game itself, titled FIFA World Cup Launch Edition, aimed to deliver a comprehensive experience, featuring all 48 teams, 1,238 players, and 16 stadiums from the tournament. Unfortunately, some reviewers found the result lacking, with one assessment calling it a woefully undercooked companion to the global event.

Despite this initial stumble, Netflix has continued to demonstrate a profound commitment to gaming as a long-term strategy. During recent earnings calls, management highlighted the success of titles like the FIFA game and the horror experience Unhinged as major achievements in their cloud gaming division.

This focus suggests that even when specific product launches face rough patches, the larger corporate vision remains firmly set. Netflix views gaming not just as a fleeting trend, but as a major growth driver, reporting that some of its gaming efforts have grown by 600%, though they remain mindful that the journey is still very much in its early days.