Bloomberg has gathered clues and found confirmations from inside sources regarding a concrete Netflix's interest in video game production and distribution. Some assumptions and the hidden data in the applications already suggested the news, now confirmed by a direct source.
The first clue about the streaming giant's intention to enter the gaming market came with the assumption of Mike Verdu. Former vice president of Facebook, Verdu was in charge of video game development for Oculus. He had also previously worked for Electronic Arts, developing titles such as the Sims, Plants vs. Zombies and the Star Wars franchise.
The second clue picked up by Bloomberg it's about the Netflix iOS app. Research conducted by the developer Steve Moser and then shared with the newspaper, revealed the presence of usable code to host video games on the platform.
Finally confirmation it came from an internal source, remained anonymous. According to the insider, Netflix is not only aiming to become a video game streaming platform, but also to produce them. The titles will appear in the catalog alongside the other contents, as has already happened in the past for documentaries or stand up comedy specials.
Bloomberg: Netflix to expand into video games next year
- led by Mike Verdu (prev. EA Mobile, Facebook / Oculus)
- games will appear as a new programming genre on the service
- no plans to charge extra currently https://t.co/NwTxletmtT pic.twitter.com/aqjEis6Pte
- Nibel (@Nibellion) July 15th, 2021
The novelty should be made official already within next year, but this will not lead to an increase in the price of the service according to the Bloomberg source. The news made the stock jump, and gave rise to several theories on what Netflix's strategy could be to make its way in an already very competitive market.
The analysis reported by Bloomberg explains the move as a way to move the waters in the more structured markets, like the US one. In fact, in the US Netflix, although it has a dominant position, is no longer able to keep a satisfactory growth rate. This new offering is therefore expected to attract customers and put pressure on competition from Disney and HBO at the same time.
As for Netflix's strategy to enter the market, the article identifies two aspects. The first is to build on the experience already gained with TV series, starting with few well-curated titles and then expand according to the success these first steps will have.
The second aspect concerns the content of the titles. The games will be linked to the most successful shows hosted on the platform. In fact, for some time now Netflix has reserved the rights for a title based on Stranger Things.
Whatever strategy Netflix decides to implement, its entry into the world of video games it could represent an earthquake, should succeed where Amazon is failing with its studios.