Netflix to enter video game business by adapting hit shows like Stranger Things; critics doubt it will pay off
- Having strong intellectual property and deep pockets is no guarantee of success at developing games. Disney failed three times before turning to game makers
- Moreover, Amazon, Google and Facebook have poured hundreds of millions of US dollars into gaming in the past decade without becoming big players
With over 200 million paid subscribers worldwide, Netflix is an absolute behemoth.
The streaming entertainment giant has successfully transitioned from a scrappy start-up paying to license its content to a major player in Hollywood, splashing out tens of millions of dollars on its own productions.
So what’s next for Netflix? The answer to that question, at least in part, appears to be video games. Netflix is fishing around for a gaming executive to help it expand out its gaming initiative, according to a recent report in The Information. While the company has acknowledged an interest in interactive entertainment, it has yet to decide what this will mean in practice. Licensing content from existing game makers? Making its own games? And how will you actually play those games?
While we still don’t know much about Netflix’s plans, one thing is clear right now: Netflix getting involved in gaming is almost certain to fail.
“I do think they will try, and do think they will fail,” says Wedbush managing director Michael Pachter. “It’s hard to make games.” Indeed, the video game industry is a very risky business, and even entrenched studios with top-tier talent and years of experience regularly go under.