Over two years after it launched a built-in gaming platform into its regular subscription service, Netflix is finally trying to figure out how to make money off of video games.
This comes from a Wall Street Journal report, which cites "people familiar with discussions" internally at the streaming giant. According to these sources, internal conversations at Netflix have recently included a number of suggestions of how to capitalize on Netflix Games, including adding in-app purchases, charging premiums for certain games, or integrating games with ads in them to its new Netflix ad-supported tier.
If any of these were implemented, it would mark a significant shift for Netflix Games. Up to this point, Netflix has offered its playable game library to all Netflix memberships without ads for no extra charge. By the end of 2023, Netflix reported it had 86 total games available on the service and 90 more in development. In 2023 specifically it brought third-party games like the GTA Trilogy to the service, alongside internally developed games like Oxenfree 2.
And yet, Netflix has struggled to get many of its subscribers to actually play them. As of October 2022, one year after the service's launch, less than 1% of Netflix subscribers were playing Netflix Games. And this past October, with another year and over three times the games it had at launch, that percentage doesn't seem to have improved any. It's not an especially promising start for a service that's shelling out the cash to acquire companies like Night School Studio, build new internal studios, and court famous developers like former Halo boss Joseph Staten. WSJ suggests, per analysts, that Netflix has spent about $1 billion building its games business thus far.
But new monetization strategies aren't the only tactics Netflix seems to be willing to try. In March of last year, someone discovered code within the Netflix app indicating the company was experimenting with running games on TVs using smart phones as controllers. It's also been exploring cloud gaming offerings, according to multiple job listings. If implemented, both of these strategies could help expand the userbase, which for now is limited to those interested in playing games on their phones via the app.
For now though, all of these possibilities are limited to discussion and rumor. Netflix's current stated plans for the new year are thus far more of the same, aka, more new game releases. These include Cozy Grove: Camp Spirit, Sonic Mania Plus, Hades, and Game Dev Tycoon. Netflix is also working on a Rebel Moon game developed by Super Evil Megacorp, and a game set in the Squid Game universe.
Rebekah Valentine is a senior reporter for IGN. Got a story tip? Send it to rvalentine@ign.com.
