Netflix is continuing its push into gaming despite recent challenges, including layoffs and the closure of one of its in-house studios. The company appointed veteran game developer Alain Tascan in July to lead its gaming efforts, but shortly after, it laid off around 35 employees and shut down Studio Blue, a team focused on high-production value, multi-device games.
These changes have raised concerns among some observers about Netflix scaling back its gaming ambitions. However, Mike Verdu, the former head of Netflix Gaming, now vice president of generative AI for games, dismissed these concerns, claiming the restructuring was part of a planned transition rather than a retreat.
Despite the setbacks, Netflix’s gaming strategy is not shifting dramatically. The closure of Studio Blue, which had a focus on console gaming, reflects the company’s ongoing focus on mobile and cloud gaming.
Netflix seems to prioritize a more versatile gaming experience that integrates with its streaming platform, emphasizing accessibility across multiple devices rather than traditional gaming classifications like “AAA” or “AA” titles. This broader, technology-driven approach sets Netflix apart from traditional gaming companies, according to analysts like Gareth Sutcliffe.
The true test for Netflix’s gaming efforts will come next month with the launch of “Squid Game: Unleashed,” a game based on the highly popular Netflix series “Squid Game.” The game will be released on December 26, coinciding with the second season of the show, and is expected to capitalize on the series’ massive global popularity.
Netflix Restructures Gaming Strategy Amid Studio Closure, Betting Big on Mobile and ‘Squid Game’ Release
The simultaneous release of the show and the game is a strategic move, but it also carries significant risk. If the game fails to meet the expectations set by the show’s success, it could negatively impact Netflix’s gaming reputation and future adaptations.
In addition to “Squid Game: Unleashed,” Netflix is preparing to release “Monument Valley 3” on December 10, marking the third installment of the beloved mobile puzzle game series. Instead of focusing solely on blockbuster titles, Netflix aims to build a diverse and extensive gaming library, much like its video streaming service.
While Netflix has not shared official figures about its gaming performance, reports indicate that its total game downloads surpassed 210 million as of September, with the “Grand Theft Auto” series contributing significantly to the numbers.
Netflix’s growing gaming division aligns with its broader strategy to expand its offerings, which includes a push into advertising. Although Netflix currently doesn’t feature ads in its games, it has been exploring the possibility of in-game ads since early 2024.
As gaming continues to capture more audience attention, Netflix’s gaming initiatives could play a key role in its future growth, even if ads are eventually introduced. Experts believe that regardless of whether in-game advertising is implemented, Netflix’s presence in the gaming space will continue to be important for capturing the attention and marketing dollars in the gaming sector.
