At the TechCrunch Disrupt conference yesterday, the VP of gaming at Netflix, Mike Verdu, confirmed that the streaming giant is definitely working towards incorporating cloud-based gaming into its business. Netflix already has several mobile games for iOS and Android, but the company wants to “meet members where they are” by creating games for PC and TV as well.
“We’re very seriously exploring a cloud gaming offering so that we can reach members on TVs and on PCs,” Verdu said. “We’re going to approach this the same way we did with mobile, which is start small, be humble, be thoughtful, and then build out. But it is a step we think we should take to meet members where they are on the devices where they consume Netflix.”
The Verge
Netflix is one of the top streaming services in the world and has a knack for producing excellent original TV and movies. There’s little doubt that it could do the same for gaming with enough pros on staff. The question is mainly, what makes Netflix think that it can succeed with user interaction where the now shut-down Google’s Stadia could not? Google is a tech giant with one of the most popular web browsers around, yet at the end of September, its cloud-based streaming service, Stadia, announced that it would be shutting down in January 2023 after just a few years of being up and running.
Mike Verdu addressed this during the same conference. He was sure to point out that Stadia was a “technical success.” The company didn’t fail to create a cloud-based gaming company that worked. But the business model used attempted to replace consoles, and that’s where Netflix is in a better position. Instead of trying to be the next Xbox or PlayStation, Netflix will continue to be a streaming service that also offers cloud-based gaming as an add-on. “The hope is over time that it just becomes this very natural way to play games wherever you are.”
Though Verdu specifically said that Netflix would be starting small with cloud-based gaming, in an investor letter it was revealed that the company has 55 games in development. While many of them are likely for the mobile gaming service that Netflix currently offers, there’s no specific indication that all 55 of these games are for mobile. It’s likely that some of them are the first tries at the new streaming model. Despite the fact that less than 1% of Netflix subscribers actually utilize their games, Netflix has allegedly seen some evidence that games may lead to higher retention of subscribers.
Netflix has a great point that the company doesn’t have much to lose by trying this venture. If the gaming service fails, at least they still have binge-worthy TV shows in abundance.