Netflix is Expanding to PC Titles Despite Weak Demand for Mobile Games

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

person gaming

It’s been over a year since Netflix first ventured into video games. Starting with a stream of mobile titles based on its hit TV shows like “Stranger Things” or “The Queen’s Gambit,” the streaming colossus hoped that it could extend the life of its most popular properties while also making some extra cash by capitalizing on the record-breaking gaming sales earlier in the pandemic.


But the markets have changed drastically since last summer, and Netflix is finding that it’s hard to get gamers to keep playing.

Overall spending on video games and hardware is trending downward, and industry analysts at NPD Group reported that consumers spent 9% less on mobile titles this quarter. Plus, in August, third-party analytics firm Apptopia estimated that only 1.7 million people were engaging with Netflix’s games—less than 1% of its global subscriber base of 221 million.

So it’s clear why Netflix executives are rethinking their strategy on gaming. App analysis from SensorTower indicates Netflix had only 11 million game downloads less month. Netflix didn’t immediately respond to dot.LA’s request to verify this count.

The company, however, is hoping that a “brand-new AAA PC game” could boost downloads and lure in a more loyal, hardcore gaming crowd. No doubt inspired by the recent blockbuster sales at Activision Blizzard – its “Call of Duty: Modern Warfare 2,” game netted $800 million in its first three days of sales – Netflix is now targeting a live-service shooter title for PC, led by a former Blizzard producer Chacko Sunny.

In addition to having 55 games in development, earlier this year Netflix also went on a spending spree earlier this year, buying up gaming studios and recruiting them to develop games under the Netflix Games banner. At a conference in May, Netflix Vice President of Games Mike Verdu promised a crowd “richer and deeper experiences,” including cloud gaming titles that could draw in a new generation of gamers.

Details on the upcoming PC title are sparse and there’s no release date yet. But for once, it’ll be a true Netflix Original game.

It helps too that Netflix didn’t expect this first year expanding into gaming to go seamlessly. In its recent third quarter earnings report the streamer said “our first year was about establishing our gaming infrastructure and understanding how our members interact with games.”

Clearly, the company has the cash to invest in this new venture. But given that the top-selling games last month were all from big-name console and PC developers like Activision, Warner Bros., EA and Ubisoft, Netflix will have a steep hill to climb to catch up.
https://twitter.com/samsonamore
samsonamore@dot.la

Subscribe to our newsletter to catch every headline.

Office Hours: Apex Founder Ian Cinnamon on Why LA Is the Aerospace Capital of the World

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

​Ian Cinnamon
Ian Cinnamon

On this episode of Office Hours, Apex founder and CEO Ian Cinnamon discusses the importance of investing in space exploration and shares his thoughts on the evolving space ecosystem in Los Angeles.


Read moreShow less
https://twitter.com/spencerrascoff
https://www.linkedin.com/in/spencerrascoff/
admin@dot.la

This Week in ‘Raises’: Measurabl Snags $93M, Selva Ventures Grabs $34M

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Raises
Image by Joshua Letona

A local data management platform company lands fresh funding to help commercial real estate owners reduce carbon footprint, while one Los Angeles-based venture firm closes its second fund to accelerate the growth of emerging companies across health, wellness, beauty and personal care.

***

Read moreShow less

McKinsey & Company Launches InLA Accelerator To Help Underrepresented Founders Tackle Startup Challenges

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

McKinsey & Company Launches InLA Accelerator To Help Underrepresented Founders Tackle Startup Challenges
InLA

In 2022, female founders saw a 28% decline in overall U.S. funding, while Black-led startups saw a 38% decline in total capital received. In an effort to increase funding for minority-led startups, global venture firm McKinsey & Company is launching InLA, an accelerator program for underrepresented founders.

“This effort is something that the firm has been really excited about for a long time,” Engagement Manager Elkhyn Rivas Rodriguez said. “There's obviously a meaningful and growing startup community out here and just from a diversity standpoint, LA is incredibly diverse and multi-ethnic and multicultural. So we think that there will be a really great pool of potential companies to partner with.”

Read moreShow less
RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending