Netflix has shut down its Southern California-based video game studio, referred to internally as “Team Blue,” which had a specific focus on producing AAA games.

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.

Netflix's gaming arm is best known for its indie and mobile titles, but the company recently made a push into AAA by hiring execs from high-profile franchises like Halo, Overwatch and God of War. That strategy may be coming to an end,

The studio, known as Blue, was developing a multiplatform AAA game for an original IP when Netflix shut it down.

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).