Earlier this week, Netflix announced their intent to acquire developer and publisher Next Games in a $72 million deal. Next Games is a group of mobile gaming studios that sees Netflix dip their toes further into the gaming industry. Seeing them go the mobile route though, speaks volumes to me about what we can expect from Netflix in the industry, at least in the short term.
We’ve known for some time that the tech giants (excluding Microsoft) are looking at dipping their toes in the waters of gaming. Google, Amazon, and Netflix among three of the most well-known. So far in core gaming circles, these companies have seen limited success. The most successful so far looking like it is Lost Ark, helped by the promotion that Amazon are able to give it through Twitch. Another Amazon product. Could this be a way for Amazon to build some momentum?
The new ‘Netflix of gaming’
When you look at what Netflix et al are doing, you know they can see the money in gaming, and understand they definitely see the service/subscription/mobile models as the most viable options for them. For Netflix, I get other reasons why this deal might make sense too. Next Games make mobile games based on TV shows… But to see another massive company shy away from core gaming is scary, especially for core gamers out there. Especially when we see their approach looks to be increasingly down the ‘Apple’ route… mobile/free2play/pay2win… While this route may be more profitable because the cost of production is much lower than the AAA route, these games tend to be highly unpopular with core gamers. It is quite disappointing to see really, because if they were to invest, like only these massive corporations can, they could probably push gaming even further than with just Microsoft, Sony and Nintendo. Alas, they instead are opting for the ‘easy’ option.
Google Stadia: great tech poor execution
Its not that some of them haven’t tried though. Google & Amazon have made half-hearted attempts at the core gaming experience, but are finding that they are struggling to break into it due to their own corporate greed, with Google seemingly coming off worst. To be fair to Google, the tech behind Stadia is brilliant and even beats out that of Xbox Game Pass Cloud. But their execution was absolutely shocking… It definitely put a sour taste in the mouths of gamers.
This could be problematic for them, as core gaming circles include the biggest video game influencers, and ultimately dictate trends in the industry. Seeing Netflix go in for a mobile publisher speaks volumes… It says that Netflix are far more concerned with making a quick buck, than in the artform and the industry. Don’t get me wrong, I know Sony, Microsoft and Nintendo love making money, and it is their end game. But their approach is very, very different. We have seen with Sony, Nintendo, and since the Phil Spencer leadership, Microsoft, over the years have empowered the creative talents to do what they do best. Trusting this talent to deliver brilliance, thus being successful and bringing top of the line games, driving innovation.
The threat to the core gaming experience
If Netflix, Amazon, Google etc get too big a foothold into gaming using their current strategies, the core gaming experience as we know it could change. We could stop seeing games like Elden Ring, The Witcher, Skyrim, God of War… Because they are so expensive and time consuming to make, the margins are much less. These newer entries to the industry are seeing the easier, more profitable Apple/NFT/mobile gaming route, The Dark Side of gaming if you will, and are licking their lips. It is decisions like these that underline why gamers should feel so lucky to have Sony, Microsoft and Nintendo dominating the core gaming space, not just dominating but doubling down on it too. They clearly have people in their ranks who are gamers with love and passion for the hobby. Only through this could they understand the value of the core gaming experience.
I hope for Microsoft, Sony and Nintendo that game streaming is a success for them, because this is how core gaming will grow to compete with the mobile monstrosity that has consumed Apple, Google and the others. Far more people play mobile games than console and PC games. The console market is close to full saturation at about 250-300 million units sold per gen, across all manufacturers. Games are also becoming more and more expensive to make. To continue to experience the pinnacle of the video gaming experience, we need streaming to be a success for them… No matter what some of you all might think.
What do you guys think? Are you full of fear for the industry, or are you not worried at all? Let me know down in the comments or on Social Media.
