Netflix has stated that it is “refining” its games offering by focusing on narrative, party, kids and known-IP games as it pushes more into TV-based cloud gaming.
As part of its blowout Q4 earnings, Netflix said that Squid Game: Unleashed is “on pace” to be its most downloaded game to date. As we reported last year, it is the first Netflix game to be released completely free, without requiring a Netflix sub to play.
After three years of releasing a broad range of mobile titles, Netflix said it is now focusing on “a few key genres”, including narrative games based on its own IP, party games, kids games and “mainstream established titles (like Grand Theft Auto)”.
It also re-stated its goal of making Netflix games “accessible on all device types over time” and said that it will continue to “test and expand“ cloud games on TV this year.
Amid leadership changes, staff departures and the closure of its triple-A game studio, Netflix coCEO Greg Peters also acknowledged that its games offering’s impact on customer retention has been “relatively small”.
“But frankly, so is our investment in games relative to our overall content budget,” he continued. “We’re going to stay disciplined about scaling that investment as we see continued scaling and member benefits.”
Elsewhere in the call, Peters said that Squid Game: Unleashed’s popularity “validates our Netflix game formula”, which is to enable a “virtuous cycle between linear content and simultaneous game offerings.”
He continued: “We already see how this approach not only extends the audience’s engagement with the universe and a story but also creates a synergy that reinforces both mediums, the interactive and the non-interactive side.”
Peters also said Netflix’s social and party games are intended to be “a successor to family board game night or an evolution of what the game show on TV used to be.” As we reported recently, a Stardew Valley-like game plus “dual screen gaming” projects are also in the works at the streaming giant.
On kids games, Peters described Netflix as a “safe space” for younger players as its games don’t have ads or IAPs.
“So to try and summarise, there’s plenty more to do in this space, but we’re breaking into a whole new content category, which, by the way, drives approximately $140 billion in consumer spend ex China, ex Russia and not even including the ad revenue,” he added.
“So we’re iteratively showing our members that we are a place to discover and play games, and we look forward to continuing to launch bigger and bigger games every year.”
