Netflix needs to tread cautiously if it’s serious about gaming

This story about Netflix’s entrance into gaming, boiled down, in 1:54 minutes.

What’s the fuss?

A disappointing earnings report from Netflix has investors reeling, but the announcement of the company entering into the gaming space has gamers intrigued.

The situation

Netflix’s second quarter earnings report was a nightmare for bullish investors, as it revealed net income short of market expectations.

  • Executives blamed the company’s poor financial performance to further pandemic-related production delays as well as slowing subscriber growth as people begin to integrate back into society.
  • With their recent announcement of plans to add gaming into their repertoire, Netflix hopes to return to their high growth phase.

The streaming incumbent announced that the service will offer video games in conjunction with its existing services at no extra cost, focusing first on mobile games.

  • Rumours of this strategy flooded the Internet when the company hired a seasoned video game executive back in May.
  • Although details are quite sparse right now, there’s no question that Netflix is about to enter into a highly competitive field.

Boiling it down

With the film & TV streaming scene being quite saturated, game streaming seems to be the new frontier.

  • However, the capability to stream video games directly to your devices already exists thanks to the capabilities of Sony, Microsoft, and Google — just to name a few.
  • If Netflix chooses to goes down the traditional mobile games route, it will face even more competition.

Amazon’s spectacular failures in developing video games are proof that all the money in the world doesn’t come close to beating raw talent and experience.

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