Netflix’s Plan To Jump Into Video Games Puzzles Wall Street
- ByAyushi Ray | July 17, 2021
Netflix’s plan to jump into video games puzzles Wall Street. Netflix on July 15, 2021 confirmed that it recruited a video game veteran from Facebook to lead a gaming team at the television star Mike Verdu was hired to take charge of video game development at the Silicon Valley company, which has openly called hits such as “Fortnite” competition for people’s online entertainment time. Though there’s long been speculation that Netflix might move into video games, Wednesday’s news that it had hired an executive to lead the effort ,and they would also start adding titles to its streaming platform from the next year was quite a surprise The California-based company however doesn’t have the proper infrastructure or the expertise to create or support top notch games, according to the analysts, and ofcourse it is not a easy thing to build this capability.“They don’t have a game catalog, hey haven’t cultivated a base of gamers in their audience,” said Lewis Ward, research director for gaming at IDC. “And they don’t have an internal studio or infrastructure to handle a service.”
After the news came round, Netflix shares saw a jump, and was first reported by Bloomberg. But by Thursday afternoon, they had sunk quite low about 1.8% in New York trading. Netflix hopes to gain customers to subscribe to premium content in their channel, by laying their hand on video games as well. It is expected to start slow with the effort, helping minimize risk. The company has yet to settle on its game-development strategy and may begin with just a few titles, Bloomberg reported Wednesday. Netflix doesn’t currently plan to charge for the games, according to a person familiar with the matter. The idea is to feature the option alongside its current fare: movies, TV shows and documentaries that are broadcasted to its roughly 204 million members in more than 190 countries.
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