Netflix creates first internal video game studio

Netflix Inc. creates its first video game studio in an effort to become less dependent on third-party developers and expand its game offerings to platform users.

According to a Netflix statement, the new studio will be based in Helsinki and will be led by Marko Lastikka. Lastikka previously worked for over five years at Zynga Inc. and prior to that was a co-founder and executive producer at Electronic Arts Inc. Tracktwenty in Helsinki.

“This is another step towards building a world-class gaming industry that will offer many exciting and engaging original games – without ads and without in-app purchases to our hundreds of millions of users around the world. Amir Rahimi, vice president of game studio Netflix, said in a statement.

The new game studio will be Netflix's fourth since the company acquired Next Games and Boss Fight Entertainment earlier this year. Netflix launched Night School Studio in September 2021.

There are currently 31 mobile games in the Netflix catalog. These games do not have ads or in-app purchases, but they are available only to subscribers of the platform. By the end of the year, the company plans to release 50 more games. This includes Stranger Things: Puzzle Games developed by Next Games, which is based on the platform's popular show and will soon be exclusive to Netflix.

Netflix began promoting video games in 2021 to diversify its streaming offerings amid stagnant growth. But just over a year later, less than 1% of Netflix's 221 million users are playing games on the platform, Consumer News and Business Channel (CNBC) reported last month, citing an analysis by Apptopia. The rush to back the gaming division came after the company lost 970,000 subscribers in the second quarter.

The new studio doesn't have a production schedule yet. "It's still early days and we still have a lot of work to do to bring a great gaming experience to Netflix," said Rahimi. According to Rahimi, these four studios, each having their own strengths, and areas of expertise, will develop games that cater to the diverse tastes of the platform’s users.