It was November 2021, when the streaming giant of the big red N (not to be confused with that of Nintendo) launched a new service, in a rather singular, disruptive and above all innovative logic. A gamble, if we want, more than a bet, that of Netflix in the launch a first selection of video games available on its platform, but usable only on mobile. A strategic move, at least apparently, with big dreams and expectations to open up a slice of the market also in the videogame sector, although the relative platforms are few, but which could serve as a Trojan horse to start settling in this further business to aspire to subsequent progress and developments.
Perhaps it did not go quite as expected, and there have been many difficulties to face, despite the launch of highly successful titles in the last twelve months. From Squid Game to Stranger Things, through La Casa di Carta and Bridgerton, the best movie and serial titles do not have definitely kept the same pace as the growth of the videogame offer of the platform. Let’s see in detail what happened and how the current landscape is changing, starting November 2021 in the rather difficult relationship between Netflix and videogames.
Netflix and the first steps in the world of videogames
A November 2021, the promises and ambitions of the streaming giant were really high, when it launched its new gaming service. With Netflix Games the in-app marketplace opens, simile a Google Play Pass e Apple Arcade, of the big red N where subscribers can download free mobile games, with no ads or microtransactions required. An example that follows closely the one already tested, but not too much talked about, by Prime Gaming.
Netflix has never hidden that it wants to focus strongly and decisively on this sector entertainment. He did this by opening the doors of his section by releasing different titles for free, as well as making several very popular animated series related to the gaming universe. Between these, Arcanethe show taken from the universe of League of Legends, or the recent Edgerunners, a series based on the events of the universe of Cyberpunk 2077.
The mix of video games and seriality, or world of cinema in the broad sense, was therefore immediately evident. A move that exudes not only consistency with Netflix’s core business, but also a desire to consolidate the latter, adding to the dose with ancillary content to some of the most successful series. Among these, it is useless to remember Stranger Things: 1984 o Stranger Things 3: The Gametitles taken from the creature of the Duffer brothers which is about to close with the fifth season.
The close relationship between Netflix TV series and videogames
These are the prerequisites, therefore: a expansion yes of the offer, but with several references to the original products launched on the same platform. A sort of variation on the theme, a closed circuit where different products refer to the same offer. The intentions for expansion, however, are strong and do not take too long to wait. After the launch of a VR title for Oculus Quest 2, the offer was further expanded in February 2022. While maintaining its gratuitousness. Netflix has indeed acquired Finnish mobile game developer Next Gamesa novelty of no small importance for the streaming giant.
Aware of the importance that gaming can hold for increase the catchment area, Netflix has tried to take further steps to identify even more effective strategies. The intentions were in fact to grow to a level where subscriptions such as Xbox Game Pass and PlayStation Plus could become real competitors. But the future wasn’t particularly bright.
In the meantime, attempts to bring the world of gamers closer have been recurring, but by cross roads, that is, without directly launching new important titles in the mobile content library. The trick was that of release several series in time, taken from videogame titleslike The Witcher, or the more recent Resident Evil, with results, however, not too satisfactory, on the contrary.
The decline of the gaming section (and beyond)
The situation becomes even more difficult when an investigation by CNBC is published last August, according to which only 1.7 million active users would download the games free. Total downloads stood at around 23.3 million. A figure not as huge as you might think, if you consider that we have over 221 million users registered on the platform. The attempt to recover the gaming sector for Netflix’s strategy has become even more important in recent months. This even in the face of one significant loss of users. In the second quarter of 2022, the report also reads, Netflix has lost nearly a million subscribers, a loss that follows the other 200,000 users in the first quarter. The first, real mutiny in over ten years of activity.
Almost a year after the launch of the gaming section, the question that arises spontaneously could be: what are the reasons for this flop? E how to try to remedywithout incurring the closure of the gaming section, thus declaring bankruptcy without return?
The main problem, if you think about it, lies in a fairly immediate first response. How many of you have seen advertising and ad hoc communications to give visibility to this section and its products? Perhaps occasionally over the previous 10 months, but we bet this occasion was more unique than rare. There are still fewer than 30 games, and most people probably aren’t even aware that Netflix offers them.
A contradiction, if we think on the one hand of the ambitions that Netflix immediately declared towards mobile gaming, on the other hand evident scarcity of sponsorship of these contents. Perhaps the investors and partners were not so important and internationally relevant to give visibility to the service, also considering the free offer. Aside from the two well-received Stranger Things titles mentioned above and Hextech Mayhem: A League of Legends Story, most of the rest are fairly generic mobile games. Perhaps with little appealing, perhaps without connection with Netflix titles. A mix of causes that have led to very little user attention.
Only an Assassin can save us
Netflix, however, is aware of the current situation and does not lose heart. It comes at a time of great turmoil, between the announcements of the last Nintendo Direct and the most recent Sony State Of Play. The news for which it is Ubisoft the software house with which new titles will be developed is the biggest news announced so far. The parent company of the Assassins, Watch Dogs and the Rainbow Six Siege assailants has in fact the possibility to enter the world of Netflix in 2023. This will happen with the launch of a title dedicated to Assassin’s Creednext to Valiant Hearts e Mighty Quest.
As with all the other titles on the streaming platform, only Netflix subscribers will be able to access it, without advertising or in-app purchases. We said well: no commercials will be includedas far as we know now, also highlighting a difference with the new cheaper plan, but which includes advertising.
A competitive sector and cloud gaming on the horizon
Is a new gamer audience on the horizon with this new partnership, or will it be of little use to shake the steady waters in which Netflix’s gaming sector is today? One thing is certain: the competition with the main services of the videogame sector it is definitely getting higher. Consequently, more difficult to deal with. What is certain is that the signature of Ubisoft, and of a franchise like that of Assassin’s Creed, without taking anything away from two other titles coming out, represent a really important opportunity for the enhancement of the videogames section on Netflix.
It is also true, in the meantime, that several months must pass before these releases. We don’t even know what the final result of these works will be, looking at them from the players’ point of view. If the dress does not make the monk, not even a large software house can guarantee success.
However, in the face of these new developments, we are curious to understand what we will have on our hands, literally, on our mobile devices in 2023. In addition to this evidence, we remind you that Netflix may be more strongly targeting a own streaming platform for video games. According to the recent job offers published by the company, Netflix seems to be moving towards cloud gaming and the development of its own videogames studio.
What are the forecasts for the partnership between Netflix and videogames?
Whether it’s exploiting Netflix original content as a starting point for content, or whether it’s new stories to offer, we don’t know. However, if the main points of contact with Netflix users have been mainly with games that have close references to its titles, we expect this trend to be maintained.
One thing is certain: the current situation of Netflix’s videogames section is obviously in difficulty. It needs to rejuvenate itself, to be more compelling, to give contents that know how to address a target consistent with its users, and that indeed manages to attract further videogame audiences. Perhaps what is missing, and what amazes us, is a decisive marketing action towards this offer, which does not remain secondary and strongly aloof compared to …