At TechCrunch Disrupt, Netflix VP of Gaming Mike Verdu dropped two significant pieces of news about the streaming giant’s foray into games. Verdu announced that Netflix is "seriously exploring a cloud gaming offering" and will open a new gaming studio in Southern California.
A Cloud Gaming Offering
Verdu emphasized that Netflix’s approach to cloud gaming would be different from existing services like Google’s Stadia and Amazon’s Luna. "It’s not asking you to subscribe as a console replacement," he said on stage. "It’s a completely different business model." The goal is for the service to become a natural way to play games, without the need for expensive hardware.
The Challenges Facing Cloud Gaming
While Netflix is exploring cloud gaming, Verdu acknowledged that existing services like Stadia and Luna have struggled to gain mainstream adoption. Google recently announced that it will shut down Stadia in January. According to Phil Harrison, Stadia’s VP and GM, "Stadia was a technical success. It was fun to play games on Stadia… but it had some issues with the business model."
Verdu attributes these challenges to the business models of existing cloud gaming services rather than their technology. He believes that Netflix can succeed where others have failed.
A New Studio in Southern California
To support its gaming ambitions, Netflix is opening an internal studio in Southern California. This will be the company’s fifth studio, with others located in Helsinki, Finland; San Francisco; Montréal, Canada; and Singapore. The new studio will be led by Chacko Sonny, a former executive producer on "Overwatch."
Verdu praised Sonny for joining Netflix, saying that he could have done anything but chose to come to the company because of its long-term vision. This suggests that Netflix is committed to developing games over the long haul.
Netflix’s Gaming Portfolio
Since announcing its foray into gaming, Netflix has 14 games in development across its studios and has released 35 games on its service. In total, Verdu said it has 55 games "in flight" at present. These games include experiences based on original IP like "Stranger Things," as well as licensed IP like "Spongebob Squarepants." Netflix is also developing original games.
Verdu hopes that over time, the company will be able to develop more games in-house, reducing its reliance on external studios and publishers.
A New Approach to Gaming
Netflix’s approach to gaming is different from traditional console manufacturers. While others are focused on hardware sales, Netflix is focused on subscription-based services. This shift in focus could lead to a new era of gaming that is more accessible and affordable for consumers.
Conclusion
Netflix’s entry into the gaming market has significant implications for the industry as a whole. With its cloud gaming offering and new studio in Southern California, the company is poised to disrupt traditional gaming business models. While there are challenges ahead, Verdu’s commitment to developing games over the long haul suggests that Netflix is here to stay.
