The Rise and Fall of Netflix’s Hidden Gaming Venture: What Went Wrong?

When Netflix began to add video games to its vast library of movies and shows, it did so quietly. After experimenting with interactive films like Black Mirror: Bandersnatch in 2018 and releasing a free game tied to Stranger Things in 2019, the company took a stronger step into the gaming world in 2021. Initially, Netflix’s gaming presence seemed like a little-known secret, but it showcased a strong focus on quality. The library mainly included award-winning indie games and some licensed titles related to its popular shows, such as The Queen’s Gambit and Too Hot to Handle. Games like Before Your Eyes, a touching story about life, and Spiritfarer, which revolves around helping lost souls, were among the highlights. Netflix also invested in established game studios, including Ustwo, known for the beloved game Monument Valley.

However, things are now shifting. Netflix closed its blockbuster game studio in California before it could deliver any games to the public. Moreover, its recent game based on the hit series Squid Game received poor reviews, criticized for its inconsistency with the show’s deeper themes. While Netflix seemed to be serious about investing in gaming, from hiring talent from respected companies to supporting indie creators, its current direction is unclear and raises concerns.

Recently, Netflix has laid off employees from its gaming divisions, including those at Night School Studio, the creators of the acclaimed horror title Oxenfree. Plans for several promising games, such as Thirsty Suitors and a Hobbit-themed game called Tales of the Shire, have also been canceled. This leaves fans wondering about the future of Netflix in gaming.

Leadership changes have added to the uncertainty. Christopher Lee, who was the first head of games at Netflix, left for a position at Xbox last year. Mike Verdu, another EA veteran who took over game development, was succeeded by Alain Tuscan from Epic Games, known for Fortnite. Leanne Loombe, who played a pivotal role in bringing indie games to Netflix, also departed this year.

Since Tuscan took charge, Netflix has made significant changes in just six months. The current co-CEO, Greg Peters, has announced a renewed focus on gaming, aiming to produce more narrative games connected to Netflix’s existing properties and family-friendly titles. He described these games as an evolution of classic family board games or TV game shows, positioning them as ad-free, kid-friendly experiences that should involve recognizable franchises.

This new approach suggests a retreat from the diverse gaming strategy Netflix had promised. It raises concerns for the studios Netflix has acquired, which are celebrated for their creative games. All signs seem to indicate that Netflix is opting for a safer, more predictable gaming strategy, disappointing those who hoped for bold and innovative gaming investments from the streaming giant.

In an earnings call, Peters emphasized that Netflix’s recent Squid Game tie-in was the most successful game to date, despite it being overly simplistic. This trend hints at more shallow games in the future rather than the quality experiences gamers crave. While some feared Netflix might exit the gaming sector altogether due to its challenges, it appears they intend to stay, albeit with a decreased focus on creativity and quality.

As Netflix looks for a new leader for its gaming division, it’s vital that that person recognizes the importance of original and engaging content. A balanced approach that supports both familiar licensed games and innovative new titles could ensure Netflix remains relevant and enjoyable in the gaming world as well. Quality matters, and players know when they are receiving less than that.