Netflix confirms it's diving deeper into the video game industry with free mobile games

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Netflix (NFLX) has confirmed it's jumping into the gaming space. The company announced via its Q2 2021 earnings report that it is further expanding beyond its initial foray into games with “Black Mirror Bandersnatch” and its “Stranger Things” mobile titles to “learn more about how our members value games.”

The news follows speculation that the company is building out its nascent games offerings with the hire of EA and Oculus veteran Mike Verdu as the company’s new president of game development.

“We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV,” the company said via its Q2 earnings release. “Games will be included in members’ Netflix subscription at no additional cost similar to films and series. Initially, we’ll be primarily focused on games for mobile devices.”

Gaming was already one of the biggest forms of entertainment before it exploded even further during the pandemic, as millions around the world were shuttered in their homes.

Reed Hastings, co-founder, chairman, and co-chief executive officer of Netflix, arrives for the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho, U.S. July 6, 2021.  REUTERS/Brian Losness
Reed Hastings, co-founder, chairman, and co-chief executive officer of Netflix, arrives for the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho, U.S. July 6, 2021. REUTERS/Brian Losness (Brian Losness / reuters)

According to Accenture, the gaming industry is now valued at more than $300 billion, putting it above the combined values of the movie and music industries thanks in large part to the growth of mobile games and platforms including those available on Apple’s (AAPL) iPhone and Google’s (GOOG, GOOGL) Android devices.

Netflix, however, will face stiff competition in the form of Apple’s App Store and Google’s Play Store, which offer free-to-play games. Apple also offers its own Apple Arcade service, which provides gamers with dozens of titles for a single monthly fee without ads for $4.99 per month.

The news also comes at a time when Nintendo’s (NTDOY) Switch is flying off of shelves, if they’re available at all, giving gamers the ability to play high-end titles on the go, and follows news that Valve will release its own handheld system later this fall called the Steam Deck.

Netflix, however, may find an advantage in not requiring users to pay for their games and being available on mobile devices.

But as stalled efforts from Amazon and its failed “Crucible” title and Google and its shuttered Stadia games studio have shown, success in the gaming industry takes more than a pile of money.

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