Netflix 'Seriously Exploring' Cloud Gaming Space As It Launches Another Studio

Netflix Inc. (NASDAQ: NFLX) plans to dive deep into gaming and is considering its own cloud gaming platform.

What Happened: At the TechCrunch Disrupt conference on Tuesday, the company's VP of games, Mike Verdu, said that the streaming giant is “seriously exploring a cloud gaming offering so that we can reach members on TVs and on PCs."

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According to Verdu, the company will also open a new gaming studio in Southern California to step up its game development.

“It’s a value add. We’re not asking you to subscribe as a console replacement. It’s a completely different business model. The hope is over time that it just becomes this very natural way to play games wherever you are,” Verdu said, according to TechCrunch.

Netflix did not immediately respond to Benzinga’s request for comment.

In July 2021, Netflix announced plans to enter the video game space and in the same year, launched its first games, including those inspired by its popular shows such as “Stranger Things: 1984” and “Arcane.” 

Netflix intends to have 50 video games live by the end of 2022. Last month, it established an internal games studio in Helsinki, Finland.

Why It's Important: The other cloud-gaming services available right now include Sony Group Corp.’s (NYSE: SONY) PlayStation Now, Alphabet Inc.’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Stadia and Amazon.com Inc.’s (NASDAQ: AMZN) Amazon Luna.

According to the TechCrunch report, Stadia and Luna, however, struggled to gain mainstream user adoption, with Google recently saying that Stadia would be discontinued in January.

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