Netflix Is About To Enter The Gaming World. Mobile First!

We have known Netflix as a great source of entertainment because of the amazing content available to stream at affordable rates.

Well, now it is about to bring games into the equation, and that too free of extra charge. This move can catapult it beyond its competitors effortlessly.

The new leaks hint that it is about to partner with Playstation but who knows what to expect. This expansion seems like a move to solve the problem of the company’s ongoing sign-up slump.

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Netflix was never satisfied with being another OTT in a saturating entertainment world. It is not a surprise as the company has been testing gaming. ‘Choose your own adventure’ content through its core service.

During a 2021 investor meeting, Greg Peters, Netflix’s Chief Product Officer, said he is keen for the first of games to be tied to their most popular titles.

Recent surveys have suggested that GenZ prefers spending their time playing video games rather than watching engaging content.

Though Netflix does not feel the need to compete with existing console giants such as Xbox and Sony PlayStation. It will take on beasts like Microsoft, Tencent Holdings, and Electronic Arts.

These mobile gaming companies have all been actively scooping up gaming studios. Staking their claim on a nearly $220 billion market opportunity.

Netflix will launch a free gaming service in 2022, built into its video streaming platform.

It will be an uphill battle in the highly competitive market and the apex must invest wisely to overcome technical as well as industry-related barriers in the short run. Cloud gaming is the go-to option.

Currently, it does not have the capability to stream cloud games as it is a much more complex process than streaming content.

The users are actively engaging on the server. Netflix could partner with or purchase a game streaming provider to tackle this. Heavy spending on 5G and AI will be a critical factor for success in this market.

Though the downloading approach is relatively easier to implement. Competition is significantly more intense and Netflix would want to take advantage of their existing user base.

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Rather than putting efforts into building new ones. Games built around Netflix’s original shows will surely give them an advantage in the early days but they will soon have to come up with a killer title to establish themselves.

We will be seeing many OTT platforms expanding into the gaming field as time passes. Amazon is already ahead in the race but there is a lot of space in this industry for new companies to grow and evolve.

Netflix is at the right place at the right time to make such a bold announcement. Being the first of its kind. It has garnered a lot of attention which would help when the first game goes online.

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The company in its letter to shareholders states, “We view gaming as another new content category for us, similar to our expansion into original films, animation, and unscripted TV”.

Netflix has a market cap of about $230 billion, which is certainly enough money to make big bets in gaming!

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