Microsoft’s (MSFT) Xbox might have been a step ahead by launching it’s Netflix for gaming package, Gamepass, but that moniker might soon become irrelevant as the Netflix of gaming is set to become Netflix (NFLX) itself.
The video streaming giant is heading into the gaming space as it announced its acquisition of game-maker Night School Studio. The studio is an indie game developer known for games with a heavy story-telling element — tying into Netflix’s offerings of movies and TV shows and opening up possibilities to introduce interactive media like Black Mirror Bandersnatch. The acquisition comes after Netflix’s release of three mobile games in the European markets and two tie-in games related to the ‘Stranger Things’ series. With an 88% year-on-year increase in subscribers for Q2 2021 and a two-fold increase in net income, the company plans to explore the possibility of adding ‘gaming’ as another content category.
why it matters
Netflix’s gaming ventures will most likely be 'mobile' plays as opposed to purely PC and console natives. It makes sense as the mobile gaming market is expected to grow at an annual rate of 11% up until 2030. Netflix’s share price was up by 2.6% at market close yesterday.