Netflix's Gaming Strategy: What's the End Goal?

Netflix recently announced several new developments in its gaming sector, including the opening of another studio and the exploration of a cloud gaming service. The company's gaming VP, Mike Verdu, stated that the cloud gaming service is being 'seriously explored,' but did not provide any further details. This move comes as other major players in the industry, such as Xbox and PlayStation, are also investing in cloud gaming services. Netflix's track record of delivering high-quality streaming services could be an advantage in this space. However, the company faces significant challenges, including the complexity of streaming video games and the need to convince consumers to pay for a new service. Netflix's existing subscription model could provide a boost, as users may be more willing to try out new games as part of their existing subscription. The company has already started to build a library of games, with 35 titles currently available, including 25 exclusive games. Netflix has also announced plans to open a new studio in Southern California, which will be led by Chacko Sonny, a former executive producer for Overwatch. The company's ability to attract experienced talent and its significant resources could help it establish a strong presence in the gaming industry. Despite these developments, the company's gaming strategy is still in its early stages, and it may take time to determine whether Netflix can successfully disrupt the gaming industry.