Netflix first entered the gaming arena in November 2021. Accessible only through their mobile application, the games originally felt like a Netflix version of the mobile application stores on Apple and Google. They could be marginally entertaining but were not necessarily built for an avid gamer looking for high-quality gaming content. Over the years, they have worked to develop games that appeal to wider audiences, with higher-quality gameplay and rich storylines.
Despite setbacks and challenges, the streaming giant has continued to push itself into the gaming space. In 2022, Netflix was struggling to compete in the high budget gaming space. Most recently, in October of 2024, Netflix shut down its AAA game division, Team Blue, which was in the process of developing a shooter. While some people thought this indicated a move away from gaming, Netflix gaming head Alain Tascan made it clear this week that the assumption could not be further from the truth.
Netflix Declares a New Strategy
Tascan gave an interview recently, and his opinion on the video game industry raised some eyebrows. Especially, he claimed that kids are no longer looking forward to upcoming gaming consoles. For children, the thrill of a new console is lost; as long as the games are fun, it does not matter what they are played on. Moreover, he indicated that children are tethered to mobile and digital screens, and to reach them through those channels is far more appealing.
According to Tascan, the idea of consoles and console wars keeps the video game industry in a battle with each other, something he wants to avoid with Netflix gaming. Part of the enjoyment of gaming is sharing and collaborative exploration, which is not fostered through console wars. Moreover, the hoops a player has to jump through to access console games can make it too frustrating and prohibitive for players.
This also brings the idea of cost feasibility. To develop a AAA game, especially one for a console system, you need time to create the game, and money to make it work. Thus, to profit, you have to sell a lot of games. Many AAA companies, including Square Enix, do not meet sales projections in their games to offset some of these costs. We see development studios around the gaming industry laying off workers or even closing altogether because they cannot afford the costs.
Meanwhile, Netflix continues to push out simpler games. That does not mean they aren’t improving or aiming to offer deeper gameplay. For example, Spirit Crossing offers players an MMO-style cozy game, with unique features. Tascan has also indicated a focus on more narrative-driven story games, something that could appeal to a wide pool of gamers.
Does Netflix Have A Point?
While it is true that the gaming industry as a whole is seeing some struggles right now, it does not appear to be the death of consoles the way Netflix is making it seem. They may not be entirely wrong about kids interest in consoles; gaming can be on any device, and kids often have a phone or tablet in their hand. However, consoles are selling. The Nintendo Switch remains one of the top selling consoles of all time, even in the United States.
Console gaming may be expensive, but it is still feasible. Gaming has taken a shift from being seen as a child’s activity to becoming previlent among adults as well. Perhaps this is in part due to many adults growing up in the gaming industry, but focusing solely on children’s trends in gaming is not capitalizing on the wide market. Both PlayStation and Nintendo have recently shown that consoles still play a major role in the stability of the gaming industry.
Netflix giving up on the console industry may be more indicative of their own financial fears than a true reflection of the gaming industry right now. While they may claim that consoles are dying and cause too many challenges for gamers, the evidence does not currently back that claim up. As developers continue to lean into cross-platform releases, it offers even more opportunities for consoles to thrive.
Ideally, there should be a balance between all forms of media in the gaming industry, such as the new Pokemon Champions concept. There can be mobile-style gaming that does not require subscriptions, subscription-based services, and console-based adventures. Having options reaches the widest range of audiences. Gamers should have a variety of games to choose from. Netflix is spending money and banking on a large industry shift. It appears that shift is not yet on the horizon. While game developers may be struggling, consoles are not, and Netflix should take note.
