Netflix is said to be looking to expand its services into the video game market.
Despite previously denying any intention to move into game streaming, the streaming giant is reportedly searching for an executive to lead a possible video game division, and has been in talks with several game industry executives about filling this position.
There are also reports that Netflix may launch a bundle video game service similar to Apple Arcade, which gives subscribers access to over 100 games for $4.99 a month.
Netflix Making Video Games: Are the Rumors True?
While there has been no official statement from Netflix addressing these rumors, a Netflix spokesperson seemed to confirm the news in a statement to Polygon, saying:
Our members value the variety and quality of our content. It’s why we’ve continually expanded our offering… So we’re excited to do more with interactive entertainment.
The gaming service is said to be "a mix of licensed Netflix intellectual property and original work commissioned from independent studios," and that the service could be launched in 2022.
If that's anything to go by, we could be in store for some video game content from the streaming company.
Netflix Has Had Some Experience With Video-Like Content
If the rumors are true, the video game industry wouldn't be completely unfamiliar to Netflix. The company has experimented with video game-like content before with its gaming-inspired films and TV shows, such as 2018’s Black Mirror: Bandersnatch, and You v. Wild.
You navigate your way through these shows by making choices using clicks or taps. As you watch, the episode implements your choices to shape how your reality unfolds.
Netflix has also produced TV series based on video game-based franchises, such as DOTA: Dragon’s Blood, Castlevania, and more. There have also been attempts to release games and virtual reality events based on original content such as Stranger Things, La Casa de Papel (Money Heist), and To All the Boys.
What Will Netflix’s Video Game Strategy Look Like?
One important factor to look out for is whether Netflix will develop original games for their service, or if they’ll focus on game streaming. While it may be easier to focus on streaming, one can't help but wonder if the company will be ambitious enough to develop its own games.
This wouldn't be a surprise, considering Netflix has won multiple awards for its original content. But can it mirror that success in its gaming division, which is a different world altogether?
Challenges in the Game Cloud Streaming Market
Gaming is a wholly different monster. Amazon, Facebook, Google and Apple have all experimented with cloud streaming games, giving subscribers access to a vast library of games through a monthly subscription... But with little success.
Cloud streaming games haven’t quite landed yet. Google Stadia, for instance, has seen several issues over its life. The cloud gaming service developed and operated by Google is struggling to update games on the platform due to a lack of support from Google.
Amazon, likewise, is also failing at video games. Since starting a video game division, Amazon Studios, in 2012, Amazon has scrapped multiple games consistently due to internal and business issues. That means that nearly a decade after expanding into the video game market, the company is yet to release a game.
This is particularly an interesting case, given Amazon’s many successes in other areas, such as entertainment, cloud computing and artificial intelligence. Needless to say, Amazon has yet to master the world of video games.
Amazon's failure in this regard can be attributed to a number of factors: a corporate culture not conducive to the gaming division, and a lack of the necessary infrastructure to develop games, to name a few.
Can Netflix Do Better?
With Netflix being aware of its potential competitors' mistakes, and more importantly the difficulty of finding success in the cloud streaming market, can it do a better job with its own gaming division?
We're confident that Netflix can find success in the gaming market if it chooses to expand, but the company may have to prioritize establishing the best foundation first—a workplace culture that is best suited for this particular division, and the right structure.
Is Netflix’s Expansion Into the Video Game Market an Inevitable Move?
Considering the warm reception to the video game-inspired content Netflix has produced, it wouldn't be a stretch for the company to expand into the video game market, as long as it taps the right people and implements the best measures to get the job done. It's a bold move by Netflix, but we look forward to seeing what it could achieve in this regard.