There is a bit of a trend developing in this space and a lot of consolidation in the gaming world, with Amazon, Meta and Google also wanting to expand their gaming capabilities. So, I think this is a smart move and could bring a new revenue stream for Netflix, and judging for the amount of dealmaking in the industry, I’d say it’d be better for Netflix to get involved now.
After the Microsoft/Activision deal, diversifying Netflix’s business seems more pertinent than ever before for various reasons. Firstly, the streaming industry is suffering right now (following the lifting of lockdown restrictions, inflation, energy prices, etc.). Secondly, Amazon is ready to take market share, and Meta is developing its metaverse, and is also ready to attack! And thirdly, consumers are expecting new ways of entertainment for a friendlier price.
If I can remember correctly, in 2020, mobile gaming accounted for 60% of all gaming. However, playing games on the cloud is something consumers are expecting even more, especially as 5G is rolled out. It would be good to see Netflix go above and beyond and offer console and cloud-based gaming on different devices, maybe linked to our Netflix account?
I think what plays at Netflix’s advantage is that it already has themes for its games, like Stranger Things, The Walking Dead (I’d love to see something about Black Mirror). I propose it acquires Electronic Arts and gets hold of The Sims – I’d love to play The Sims on the cloud!!