Netflix co-CEO Ted Sarandos indicated that cloud gaming remains a focus for the streaming service, envisioning a future where gaming on television becomes more prevalent in a "post-console world." This perspective comes as Netflix appears to be re-evaluating its broader gaming strategy, which has seen the closure of its AAA game development studio and a winding down of acquired indie studios.
Speaking at Bloomberg's Screentime event, Sarandos stated that mobile gaming served as an initial entry point, with a greater interest in cloud gaming's potential for television integration, particularly using mobile phones as controllers. He expressed a desire for Netflix to be an early investor in this space, viewing gaming as a means for intellectual property extension and brand value, offering an alternative for consumers who might choose to game rather than watch content on their screens.
This focus on cloud gaming contrasts with Netflix's previous ambitions for higher-quality, narrative-driven games. The company notably shut down Night School Games, the studio behind titles like Oxenfree, months after the release of its game Unhinged. This move has been interpreted by some as a signal of Netflix's reduced commitment to in-house development of such gaming content.
When questioned about potential acquisitions of major game publishers, Sarandos suggested a limited appetite for large-scale purchases. He noted that Netflix has historically preferred building from scratch, referencing the Warner Bros. deal as an exception. Sarandos emphasized that growth will primarily be organic, with the company seeking opportunities that complement its existing business, a strategy that also applies to its gaming initiatives.