Netflix is going full steam ahead with its lofty mobile gaming ambitions, despite low subscriber engagement across the small library of titles released so far.
The streaming giant has revealed plans to launch its own in-house game studio in a bid to reduce reliance on third-party developers. Based in Finland, the yet-unknown studio will be led by former EA and Zynga exec Marko Lastikka, joining Next Games and Night School Studio in the list of developers who already own the streamer.
"This is another step in our vision to build a world-class game studio that will bring a variety of delicious and deeply engaging original games, with no ads or in-app purchases, to our hundreds of millions of members around the world. Amir Rahimi, Netflix's Vice President of Game Studios, in a statement (opens in a new tab) announcing the news.
It's a grand, if surprising, statement of intent from Netflix, whose year 2022 has been plagued by unwelcome developments related to declining subscriber numbers and the resulting need to cancel a host of large-scale film and TV projects.
The streamer's fledgling gaming division hasn't prevented the flurry of bad news either. Data emerged in August revealing that less than one percent of Netflix's global fanbase currently plays one or more of its games. In clearer terms, this means that only 1,7 million subscribers have played a video game on Netflix since the official launch of its games section in November 2021.
Play the long game
So why is Netflix doubling down on all things when it's supposed to be in cost-cutting mode? We believe the answer remains the same as why Netflix launched its entire gaming business in the first place: simply as another way to entertain and, more importantly, retain subscribers who are already involved in the brand's ecosystem. .
Sure, less than one percent of subscribers have played a Netflix game, but 23,3 million have downloaded at least one title in the past nine months, suggesting that consumers are ready and willing to engage with Netflix content. games from the streamer if the titles themselves are worth it. Playing.
Netflix's 26-game library needs to be beefed up with a list of must-play titles to make more subscribers aware of its existence, and the launch of an internal studio is sure to help Netflix do just that.
Additionally, this Helsinki-based Netflix developer will be the first to be built by the company from scratch, suggesting it will have an enhanced ability to focus on Netflix-branded content, in particular (opening the way to new titles). rooted in popular IPs like Strangers Things, Squid Game, and more of Netflix's best shows).
Time is another factor in the slow progress of Netflix's gaming division. Those in the industry know how long it takes to create a game worth playing, and Netflix's higher-ups seem to recognize that fact as well.
“We are still in the early days and we still have a lot of work to do to deliver a great gaming experience on Netflix,” Netflix executive Rahimi said in his aforementioned statement. "Making a game can take years, so I'm proud to see how we're constantly building the foundation of our game studios in our first year, and I look forward to sharing what we produce for years to come."
In other words, it's too early to say Netflix gaming has failed, and with the launch of an ad-supported subscription tier on the horizon at the streamer, Netflix may again have the finances it needs to succeed in this industry. unknown. .