Simply because Netflix is cancelling one other hit TV present, it doesn’t imply the streaming firm isn’t investing elsewhere. In truth, Netflix’s executives’ eyes appear more and more turned away from TV content material and in direction of gaming, as its newest acquisition proves.
The corporate is shopping for Finnish video games improvement studio Subsequent Video games. The developer has a monitor document for creating cellular video games primarily based on leisure licenses, and has already created gem-matching RPG puzzler Stranger Issues: Puzzle Tales, primarily based on the sci-fi horror franchise, among the finest Netflix exhibits.
It’s additionally put out various video games primarily based on The Strolling Useless too, together with The Strolling Useless: Our World, which makes use of mixed-reality and augmented actuality components in an analogous technique to what’s already confirmed massively profitable in Niantic’s Pokemon Go.
The acquisition is about to finish within the second quarter of 2022.
“Subsequent Video games has a seasoned administration crew, robust monitor document with cellular video games primarily based on leisure franchises, and strong operational capabilities,” mentioned Michael Verdu, Vice President of Video games, Netflix.
“We’re excited for Subsequent Video games to affix Netflix as a core studio in a strategic area and key expertise market, increasing our inside recreation studio capabilities. Whereas we’re simply getting began in video games, I’m assured that along with Subsequent Video games we can construct a portfolio of world class video games that may delight our members around the globe.”
“Becoming a member of forces with the world’s largest streaming service, Netflix, presents a chance for a logical and thrilling continuation of our technique to craft interactive experiences for the world to take pleasure in,” added Teemu Huuhtanen, Chief Govt Officer, Subsequent Video games.
“Our shut collaboration with Netflix on Stranger Issues: Puzzle Tales has already confirmed that collectively we create a robust partnership.”
What Netflix’s recreation trade purchases imply for players
Although it pales compared to Microsoft’s $75 billion acquisition of Activision, Netflix’s buy of Subsequent Video games, at $65 million, nonetheless represents the corporate’s greatest funding in gaming because it introduced intent to increase its interactive leisure output final July.
Ought to the likes of Nintendo, Sony and Microsoft be involved about Netflix consuming into their gaming-focussed lunches?
Maybe Microsoft, whose buy of Activision additionally included the subsidiary cellular gaming firm King. However in any other case… most likely not. Netflix is trying to seize a few of an (admittedly giant) gaming viewers on cellular, however it’s one which, for essentially the most half, the ‘core’ gaming corporations nonetheless draw back from.
As a substitute, Netflix’s transfer sees it maneuvring to diversify its output, because it follows its viewership away from their TV screens and out into the true world on their different units. Netflix is as a lot a know-how firm as it’s an leisure one, and gaming provides it a chance to monetize its mental property (and the prevailing baked-in audiences) in new methods.
When you consider the thrill across the metaverse that’s occurring (and obvious funding into it from juggernauts Fb / Meta, and Apple with its upcoming headset), you’ll be able to see why Netflix could be concerned about partnering with an organization that already has expertise bringing leisure properties to life via AR purposes.
Increasing common franchises past only one platform is one of the best alternative to squeeze extra money from them – in Subsequent Video games, Netflix has discovered a companion that may not solely put them on smartphones, however probably into the blended actuality worlds we’ll quickly be spending our time in.
It’s price noting that Finland is the de facto dwelling of cellular gaming too – Conflict of Clans developer Supercell is predicated overseas, as is cellular gaming veteran Rovio, dwelling of Offended Birds. So there’s a hotbed of native expertise that Netflix’s gaming groups can faucet into to realize this purpose.