What Does Netflix's Entry into Streaming Video Games Mean for the Industry?

What Does Netflix’s Entry into Streaming Video Games Mean for the Industry?

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Is the era of downloading hefty game files and owning powerful gaming consoles drawing to a close? With Netflix’s recent foray into streaming video games, it might just be. The streaming giant is currently conducting a limited test, providing video game streaming directly to select devices, without the necessity for game downloads or high-end gaming hardware.

A New Player in the Game

Netflix has begun testing its streaming video games on a range of devices, including selected TV models, Windows PCs, macOS computers, and mobile devices, for select users in Canada and the UK. However, popular gaming consoles like Microsoft’s Xbox Series X and Sony’s PlayStation 5 are currently not supported.

This significant move was unveiled through a blog post by Netflix, following the quiet release of an app called ‘Netflix Game Controller’ for iOS last week. Mike Verdu, Netflix’s VP of Games, stated that the company is still in the nascent stages of its gaming journey, but it is offering two games to its beta testers.

Game On

The first game on offer is Oxenfree, a chilling narrative adventure game from Night School Studio, acquired by Netflix in 2021. The second game is Molehew’s Mining Adventure, an arcade-style gem-mining game.

Verdu emphasized that this limited beta is designed to test their game streaming technology and controller, and to enhance the member experience over time. Although Netflix added downloadable games to its catalog in 2021, this new initiative allows for streaming larger and more robust games to any supported device. All that’s needed is a solid internet connection.

The Big Picture

Why is Netflix’s venture into gaming significant? Gaming competes for user attention along with other forms of entertainment such as TV shows, movies, social video platforms, and apps. Video games, akin to films, offer storytelling and immersion into different worlds, with the added element of choice and interactivity.

Netflix’s streaming rivals, Amazon and Apple, have already ventured into gaming. Amazon offers various gaming benefits for Prime users and owns the video game streaming platform Twitch. Apple generates gaming revenue from a 30% cut of all in-app purchases through its extensive App Store’s gaming catalog and provides its Apple Arcade subscription service with exclusive games.

According to research by the Entertainment Software Association (ESA), video games are far from being a niche hobby for introverts. As of this year, 212.6 million Americans play games for at least one hour a week. Video games are a multibillion-dollar industry, and casual mobile games are particularly popular. ESA’s gaming report, citing Circana data, revealed that Americans spent $56.6 billion on video games last year, a figure that has increased by $13 billion since 2019.

With its expansion into gaming, Netflix could potentially increase the number of gamers worldwide and fill the content void during the ongoing WGA and SAG-AFTRA strikes. As we watch this space, we can’t help but wonder what role cryptocurrencies might play in this rapidly evolving landscape. One can imagine a future where platforms like cryptoview.io become instrumental in navigating the intersection of gaming and digital currencies.

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