Netflix to Expand into Cloud Gaming

Netflix VP of Gaming Mike Verdu announced that Netflix is “seriously exploring a cloud gaming offering” and that the company will also open a new gaming studio in Southern California.

Verdu said that cloud gaming will be a completely different business model, as "we’re not asking you to subscribe as a console replacement.” The company hopes that over time cloud gaming will become the natural way to play games.

Google’s Stadia and Amazon’s Luna have made the same play, attempting to peddle video games that people can play even if they don’t have an expensive gaming computer or coveted console. But these services have struggled to attain mainstream user adoption. Google recently said that it will shut down Stadia in January. Verdu thinks these products struggled due to their business models, not the technology itself.

Stadia was a technical success. It was fun to play games on Stadia. It had some issues with the business model, sure,

Verdu said at the TechCrunch Disrupt event.

Verdu revealed that Netflix was stepping up its game development by opening an internal studio in Southern California. This is the company’s fifth studio — just last month, Netflix set up shop in Helsinki, Finland. Others include Boss Fight Entertainment, Night School Studio and Finland’s Next Games, which are each designed to develop games catering to different tastes.