Netflix Shifts Focus to Licensed Games Amid Lackluster Subscriber Engagement

Netflix's gaming division faces challenges, with less than 1% of subscribers engaging with games, prompting a shift towards licensed titles and adaptations from popular franchises.

Share this:

Netflix’s Gaming Ambitions

Netflix, known for its hit series like Squid Game and Stranger Things, has ventured into the gaming world with an array of exclusive titles, such as Oxenfree II: Lost Signals and the anticipated Monument Valley 3.

These selections hark back to a golden age of console gaming that mesmerized players in years past.

This era played a key role in the early success of the App Store’s dedication to innovative game design.

Yet, recent data points to a disappointing reception from Netflix subscribers towards its gaming offerings.

In 2023, it became evident that under 1% of subscribers engaged with the games included in their plans, indicating these titles often go unnoticed.

Instead of diving into gaming, most users prefer to binge-watch popular shows like Bridgerton.

A former executive from PlayStation even compared Netflix’s gaming strategy to installing coffee machines in cars—a clear misalignment with audience expectations.

Shifting Focus Toward Licensed Titles

Despite ambitious launches like Oxenfree, Netflix’s most-played games have turned out to be adaptations, including the GTA Trilogy and Squid Game: Unleashed, a reimagined, more violent take on Fall Guys.

These titles diverge from the indie feel that Netflix envisioned for its gaming catalog and hint at a new trajectory for the company.

Recently, Netflix stated its intention to focus on high-quality titles, especially those rooted in its own franchises, social and party games, children’s games, and popular mainstream hits like Grand Theft Auto.

During a fourth-quarter earnings call, Co-CEO Gregory K. Peters highlighted a lineup of fan-favorite games inspired by popular Netflix shows like Too Hot to Handle, Emily in Paris, and Selling Sunset.

He expressed optimism that Squid Game: Unleashed would enhance their gaming strategy, thereby strengthening the connection between Netflix’s original content and its gaming offerings.

Prospects for the Future

This pivot towards licensed games and adaptations comes as Netflix re-evaluates its indie strategy, leading to the cancellation of several prominent titles, including Klei Entertainment’s Lab Rat, Don’t Starve Together, and Thirsty Suitors.

Additionally, the exit of key figures—such as the lead for second- and third-party game development—underscores the shift.

While these changes might seem like minor adjustments, the backdrop of significant layoffs and leadership transitions suggests a deeper issue.

It paints a portrait of a tech giant that, after initially stumbling into the gaming landscape, lost patience with the lengthy road to success and decided instead to pursue safer, commercially appealing options.

Why aim for indie developers when it’s simpler to adapt successful shows into games?

The dissolution of “Team Blue” last fall sharply illustrates this retreat.

After assembling a group of veterans from notable franchises like Overwatch and Halo for an ambitious console project, Netflix ultimately shut down the team.

This situation mirrors the missteps of other tech companies, like Google, which struggled with its Stadia initiative’s in-house game developments, and Meta, which closed Ready at Dawn just after acquiring it.

As 2024 approaches, Netflix aims to improve the profitability of its gaming division by exploring options such as price increases, incorporating microtransactions, and even considering in-game advertisements.

Changes in leadership are already underway, including a former Epic Games executive stepping in as president of Netflix Games.

This could signal a recalibration rather than a complete retreat from gaming ambitions, hinting at a desire to extract more revenue from its popular properties.

Despite the perception that Netflix’s gaming efforts lack depth, the company still boasts over 300 million subscribers who have access to notable games like Kentucky Route Zero, Into the Breach, Terra Nil, Dead Cells, and Death’s Door.

Moreover, two potential game-of-the-year contenders for 2024, Arranger and The Rise of the Golden Idol, await players who might overlook them as they scroll through new show spin-offs like Too Hot to Handle.

The potential for Netflix gaming remains, contingent upon the company’s ability to create an engaging environment for its users and maintain momentum.

At this moment, however, Netflix seems more inclined toward expanding its library with live events and sports, rather than nurturing a line of critically acclaimed games.

Source: Kotaku

Share this: