Netflix is continuing to expand its video game offering. This comes after the streaming giant announced it had acquired the Finnish studio Next Games for roughly $72 million. This acquisition is expected to close during the second quarter of this year.
“Next Games has a seasoned management team, strong track record with mobile games based on entertainment franchises, and solid operational capabilities,” said Michael Verdu, the VP of Games for Netflix, in a statement. “We are excited for Next Games to join Netflix as a core studio in a strategic region and key talent market, expanding our internal game studio capabilities. While we’re just getting started in games, I am confident that together with Next Games, we will be able to build a portfolio of world-class games that will delight our members around the world.”
This marks the second major gaming studio Netflix has purchased in the last seven months. The organization also acquired Night School back in September of 2021.
It makes sense that Netflix would want to purchase Next Games, which was founded in 2013. The organization’s most popular title, Stranger Things: Puzzle Tales, is based on the Netflix series of the same name. On top of that, the company reported that roughly $30 million of revenue came from in-app purchases alone in 2020.
The Profit‘s Take:
Netflix has not given any indication that they want to be bold with their gaming strategy… AT ALL! Every indication is that video games would be another bullet point on the long list of things that come with a Netflix subscription so that the company can justify increasing the cost of its service by a dollar or two every couple of years. I mean, it’s boring, but it’s exactly what they said they wanted to do. At least they’re consistent. Here’s my hot take: Netflix should buy Discord. A great retention mechanism would be giving Netflix subscribers with Discord accounts the chance to have viewing parties with their friends. The dirty secret of Netflix is that its subscriber growth is slowing, so I am sure their end goal is still retention.
(All information was provided by The Hollywood Reporter)
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