The effort to enter the gaming industry more strongly Netflix continues with the establishment of its second major gaming studio. We don't know if they will make games primarily for their just-announced cloud service, but we have the first details.
Netflix launches its cloud gaming service, says it learned a lot from Stadia
Stadia's shutdown was predicted by everyone from its very beginning. It happened despite the quality technology, in the end no one is unhappy because all players will get a full refund, however, Google's failure will not discourage the rest of the industry from trying the same.
That's how the leaders of Netflix announced their entry into cloud gaming. "We are seriously exploring cloud gaming to reach members on TVs and PCs," company vice president Mike Verdu revealed at the TechCrunch Disrupt conference.
He says that he will approach cloud gaming with caution, as they did with the offer of games on mobile phones. This year Netflix offers free mobile games on Android and iOS with the same subscription.
Stadia was great, but it didn't have a good business model
Asked how he would avoid a failure like Stadia, Verdu replied that Stadia was technically successful, but had problems with its business model.
He thinks that Netflix has another starting point because adding games will create additional value to the already existing subscription. He doesn't want to sell anything new. The studio will be led by the executive producer of the first Overwatch and God of War: Ascension Chacko Sonny, who left Blizzard last year and came to create something big.
"People like that don't come to your organization to build the next big thing, unless they feel like we're in it for the long term and for the right reasons," explained Netflix Vice President Mike Verdu.
With a California-based development studio and one established last month in Helsinki, Netflix is looking to create an in-house game development culture, something Google failed to achieve with the recently failed Stadia.
"We want the teams to go through several development cycles together, to learn to work together and deliver great products, and sometimes the best way to do that is if you give them space within the organization," says Verdu.
How this whole story will unfold and whether it will result in big AAA titles or only mobile games, we will see in the coming years. If, like many others before, this initiative fails.