Netflix is strategically reshaping its gaming approach, targeting specific game genres and expanding cloud gaming capabilities in 2025. The streaming giant revealed its new strategy during its Q4 2024 earnings report, signaling a more focused and intentional approach to the gaming business.
Strategic Game Genre Focus
The company will concentrate on four key game categories:
- Narrative games based on Netflix IP
- Party and social games
- Kids-friendly titles
- Mainstream established games (like Grand Theft Auto)
Cloud Gaming
The company has been testing cloud-based gaming on TVs since 2023, aiming to make games accessible across all devices. Co-CEO Greg Peters described this initiative as “a modern take on family board game nights or classic TV game shows.” This strategy aligns with its broader focus on party games that emphasize social interaction and shared experiences, reinforcing the idea of gaming as a group activity in a home setting.
Although there’s no official release date for these cloud-streamed, the beta rollout has been promising.
Squid Game: Unleashed’s Success
The company’s flagship free-to-play title, Squid Game: Unleashed, is already showing promising results. It’s currently on track to become Netflix’s most downloaded game, demonstrating the potential of IP-based interactive experiences.
Kids-friendly titles
For children, Netflix is positioning itself as a “safe space” for gaming. Its kid-friendly games are free of ads and in-app purchases, making them an attractive choice for parents. The company also has several exciting projects in development, including an AI-powered farming simulator inspired by Stardew Valley and dual-screen gaming features.
Business Perspective
In its earnings call, co-CEO Greg Peters acknowledged the limited impact of games on customer retention but remained optimistic. “Our investment in games is relatively small compared to our overall content budget, but we see great potential,” Peters stated. He emphasized the importance of creating a “virtuous cycle” between Netflix’s shows and games, ensuring that interactive and non-interactive content complement each other to deepen audience engagement.
Market Potential
Despite some setbacks, such as the closure of Netflix’s AAA studio and leadership changes, Peters remains optimistic about the division’s future. He noted that the gaming industry represents a $140 billion market (excluding China and Russia), providing significant growth opportunities.
Sources: Pocketgamer.biz