Spry Fox, the acclaimed developer behind mobile hits like Alphabear and Triple Town, has completed an “extremely fast” spinout from Netflix, with its founders and employees accepting significant pay cuts to independently fund and finish their “biggest game ever,” the cozy multiplayer life sim Spirit Crossing.

This dramatic move, confirmed by co-founder David Edery in January 2026, highlights the volatile landscape of the gaming industry and Netflix’s evolving strategy. The studio, acquired by the streaming giant in 2022, rapidly reasserted its independence amidst broader industry challenges.

The decision to divest from Netflix, revealed last month by Game File and detailed on GamesIndustry.biz, highlights Netflix’s evolving strategy. The streaming giant previously shut down its nascent AAA studio and canceled several external titles.

This signals a clear shift in focus towards more broad-appeal, controller-free experiences, moving away from the deeper investments seen in its earlier gaming ventures, as Netflix’s own communications have indicated regarding their future gaming direction.

A bold sacrifice for creative independence

David Edery, in a post on the company’s website, outlined the extraordinary measures taken by Spry Fox to secure its future. He and co-founder Dan Cook reduced their salaries to $20,000/year and personally financed the studio’s buyback from Netflix. Crucially, they are also distributing the majority of the new company’s equity to their employees.

This structure aims to foster a fairer, more collaborative environment, directly contrasting the typical executive-to-employee salary and equity ratios seen across many industries. Edery emphasized, “More than ever, we are all in this together,” reflecting a profound commitment to their team and their shared vision for Spirit Crossing.

The spinout itself was remarkably swift, transitioning from initial discussions to full independence in just three months—a process that typically spans six to nine months for a deal of this magnitude. This rapid disentanglement required intense effort from the Spry Fox team, as reported by GamesIndustry.biz.

Despite the operational hurdles, Edery expressed gratitude for this “surprising and hopeful” outcome in an otherwise “bleak” period for the games industry, acknowledging the widespread closures of other studios.

Spirit Crossing and the future of Spry Fox

Spirit Crossing, a cozy multiplayer life sim, began development in 2019 and now has nearly 50 people working on it. Edery noted this is a relatively small team for a game of its ambition, suggesting comparable titles would require two to four times the headcount. This lean operation underscores the necessity of the recent financial sacrifices.

Initially slated exclusively for Netflix subscribers as a free mobile title, the game’s scope has expanded significantly with the studio’s newfound independence. Spry Fox is now planning a Steam release, targeting a spring beta and a full launch later in 2026, with intentions to bring the game to other platforms as well. This broader release strategy is a direct benefit of their autonomy.

The Spry Fox story offers a compelling case study in resilience and founder-led dedication within the turbulent gaming sector. While Netflix reorients its gaming efforts towards broad-appeal, IP-focused mobile titles, Spry Fox is betting on deep engagement and a community-centric approach, fueled by a shared sacrifice for creative control and employee ownership.