A full-fledged gaming division may be forming at Netflix after reports surfaced of the streaming service meeting with game industry executives. Streaming services like Netflix and HBO Max have seen a massive jump thanks to the ongoing pandemic. However, the risk Netflix is reportedly taking seems clear when recalling the closure of Google Stadia internal development studios being announced in early 2021.
Where Google is failing, Microsoft and Amazon hope to succeed, as each company has its own cloud gaming service. Microsoft’s xCloud allows Xbox Game Pass Ultimate subscribers to stream over 100 games on PC and mobile devices. Meanwhile, Amazon’s Stadia equivalent Luna has a channel subscription system that lets players subscribe to a specific developer. The subscription gives access to all released or published games by the developer and any new releases on day one. However, Amazon has had bad luck comparable to Google's on the development front, having canceled its Lord of the Rings MMO and Crucible since Amazon Game Studios' formation.
As stated by The Information (paywall) and summarized by Game World Observer, Netflix is reportedly in the process of creating a dedicated gaming division. Sources told The Information that Netflix has met with veteran game executives about joining the company in recent weeks. While this news is still yet to be confirmed, many are not surprised the company is looking at entering the gaming market. Apparently, Netflix is contemplating releasing a “bundle of games similar to Apple’s online subscription offering, Apple Arcade,” and the streaming giant is also reportedly deciding whether or not games on its service will be ad-free.
Update (May 21, 2021 4:00 PM EDT): In a statement shared with Screen Rant, Netflix has responded to reports of its gaming division expansion, with a Netflix spokesperson saying:
"Our members value the variety and quality of our content. It’s why we’ve continually expanded our offering - from series to documentaries, film, local language originals and reality TV. Members also enjoy engaging more directly with stories they love - through interactive shows like Bandersnatch and You v. Wild, or games based on Stranger Things, La Casa de Papel, and To All the Boys. So we’re excited to do more with interactive entertainment.”
This isn’t Netflix’s first time interacting with the games industry, which lends the idea a bit more credibility. The company previously licensed Stranger Things: The Game and has produced several interactive, gamified TV shows on its service, as well as the risky but fascinating Black Mirror: Bandersnatch interactive film.
If Netflix is looking to break into the gaming scene, then it might have difficulties similar to those encountered by Stadia. Amazon is learning its own gaming lesson right now with Amazon Game Studios. Amazon has already canceled one game, shelved another after placing it back in beta, but still hopes to find success with its New World MMO. Netflix should learn from its competitors and figure out why some of the world’s biggest tech companies have yet to find large success in gaming thus far, while Microsoft - with its massive, dedicated gaming arm - continues to thrive in the same space.
Source: The Information (via Game World Observer)
Editor's note: This story has been updated to correct language relating to Google Stadia.