The Netflix gaming division continues to push into the video game space, emphasizing the streamer’s own IP worlds and characters.
Many people know the term Netflix is synonymous with the big red “N” as its symbol for the streaming platform. But will we be in a world where that same “N” will be recognized as a leader in the video game sector? A Wall Street Journal article was published today, exploring how the red streamer has been focusing its efforts on mobile games based on its own IPs, like Squid Game and Wednesday. The Netflix co-CEO Greg Peters even stated how they have made a commitment to investing even more into their gaming division.
“We know we’re not going away…because someday we’re going to be everywhere with games across all devices that we serve,” he told investors in September. To date, the streamer has invested about $1 billion into this gaming venture, acquiring staff from previous gaming roles. They hired Mike Verdu, who used to work at Meta and Electronic Arts. In September 2021, they also bought a game development studio, Night School Studio, to create Oxenfree II, a sequel to the first game of the same name. The year after, the company acquired Boss Fight Entertainment.
Boss Fight Entertainment was known for its action and storytelling games. Then, they got Next Games to create games based on properties like Netflix’s Stranger Things and AMC Networks’ The Walking Dead. According to market research from Data.ai, five of Netflix’s most downloaded games are based on its own shows and films. So why would Netflix take on this surmountable task of expanding upon its already successful pioneering of binge-able content?
Well, this $1 billion idea actually could be justified when the COVID-19 pandemic was at its peak. Netflix executives were said to have entered the gaming industry in 2020 and wanted to provide its subscribers more to do other than watch the shows on the platform. Surprisingly, they even workshopped ideas to keep subscribers engaged with the platform by potentially creating educational classes where celebrities could teach subjects such as cooking or the art of negotiating according to the WSJ. This idea was quickly scrapped and shifted toward the familiar gaming space.
Is this why Netflix subscription costs continue to rise? As the streamer continues to branch out its technological endeavours, costs would be expected to rise. They have already stated their intent to create a new app, “Netflix Game Controller,” which would be able to turn your phone into a controller so that games can be played on a TV or computer. The company is testing the app in Canada and the U.K.
Since the company seemed to be pushing action games, they justified that players would be more likely to just transform their phones as controllers rather than buying one specific to their gaming platform. They figured it would still work with their focus on action games despite the limitations of turning one’s phone into a controller.
Netflix also discussed moving into the cloud gaming space to explore alternatives to downloadable mobile games, but it still has to cook a little longer. Of course, they are most likely trying to see how they can avoid the misstep Google took with their own cloud-gaming subscription service, Stadia. Stadia was launched back in 2019 and shuttered its digital doors earlier this year.
Alright, so what are the numbers supporting Netflix’s dive into the video game industry of late?
Netflix has not been directly charging its subscribers for these games, so there has been no direct revenue for their games. According to app tracker Apptopia, their games were being downloaded 70.5 million times globally as of Sept. 20, up from 30.4 million last September. However, this is infinitesimal to the hundreds of millions of downloads that game companies such as Roblox and Activision.
These numbers also correlate with the fact that many of its games could also be downloaded elsewhere. Games like Exploding Kittens and Teenage Mutant Ninja Turtles: Shredder’s Revenge can be purchased and played on other platforms. The only argument would be that the Netflix app consolidates these games. The Wall Street Journal even asked a casual gamer named Luis Ruvalcaba whether he would sign up for the streamer just to gain access to its gaming hub.“I don’t see myself ever getting a Netflix subscription for gaming,” he said, adding that he already subscribes to Xbox Game Pass and PlayStation Plus.
Overall, Netflix seems to have a long battle ahead before they gain much traction against the gaming goliaths in the industry like Sony, Microsoft, Nintendo and Activision Blizzard. The company was noted to be in talks with Take-Two Interactive Software to have a licensing deal to bring a Grand Theft Auto game to the streaming/gaming platform. I myself will still be sticking to my Marvel Snap and TFT through the Google App Store for now. But who knows? Maybe I might make the switch in the future.
