The Netflix Acquisition Will Make it the Gaming Giant It’s Struggled to Become For Years
Netflix is officially buying Warner Bros., HBO, HBO Max, and DC Entertainment in a $72 billion cash-and-stock deal. It’s an acquisition that’ll reshape the entertainment industry, as one of Hollywood’s most historic media empires falls under the control of a company that, just over a decade ago, was still mailing rental DVDs. Despite the obvious significance to film and television, the deal’s most disruptive impact may land somewhere far less expected, as it also secures Netflix a guaranteed spot in the AAA games business.
By successfully acquiring Warner Bros. Games and its network of studios, Netflix suddenly gains control of Mortal Kombat, Hogwarts Legacy, Middle-earth: Shadow of Mordor, Batman, LEGO, plus the numerous developers who made them. It effectively fast-tracks Netflix into the upper tier of the games industry and dramatically reframes the company’s long-running ambitions in the medium. It’s quite a shortcut, especially for a company that has spent years trying (and largely failing) to convince players it belongs in gaming.
A Brief History of Netflix’s Gaming Attempts So Far
For context, Netflix’s interest in the industry began with mobile games in 2021, and it launched Netflix Games as a section of the app the following year. The company’s strategy seemed focused on adding subscription value over individually valued titles, and its initial offerings were smaller licensed titles that leaned on popular Netflix IPs, like Stranger Things. Most Netflix users disregarded these efforts, as they either weren’t gamers or played games on platforms that offered more than just branded mobile titles.
Around the same time, Netflix’s ambitions expanded to an in-house development pipeline, creating studios like Next Games and acquiring smaller, existing developers, such as Night School Studio, creator of Oxenfree. Emulating the original content model that Netflix TV had, the video games were supposed to be exclusive titles tied to streaming content or with strong narrative hooks. Most of these titles were still mobile-first and lacked the scale, polish, and marketing muscle required to compete with traditional AAA releases.
Netflix’s Current Gaming Reputation
The result of all this effort is a company that’s technically recognized in gaming but hasn’t yet achieved real influence or legitimacy. Netflix has experimented and spent money, but its efforts so far have largely been incremental rather than transformative, and for most people, Netflix Games was little more than an unused tab on a smart TV app. It’s a far cry from the dominant position it holds in streaming, which helps explain why the acquisition of Warner Bros. and its gaming assets is such a game-changer.
How Netflix Can Turn the Bus Around
There’s no telling what Netflix might do now, but the acquisition of Warner Bros. Games give the company the leverage it needs to truly and meaningfully go for complete brand assimilation; a “Total Netflix” with movies, games, and shows, all in one place. With access to established franchises, the talented developers who made them, and innovative systems like Shadow of Mordor‘s Nemesis engine, the company has almost everything it needs in terms of content and IP. All it has to do now is invest in delivering these games on platforms where players actually want to play them.
Assuming the company could afford it — which is, of course, very idealistic — the right investment and strategy could finally shift the company’s image from a dubious experimenter to a legitimate AAA games company, and integration with Netflix’s existing subscription ecosystem could be key. Netflix could already easily adapt some of WB’s titles to its platform without much effort, but making all of its other new titles (regardless of size) accessible will be critical. Additionally, the company will have to convince players that the games are best played on Netflix, which, as Epic, Xbox, Ubisoft, and EA all know, is no easy task.
Building Netflix’s Gaming Infrastructure
Firstly, most Netflix users don’t own a console or high-end PC, and if total integration is the route the company intends to take, solving that problem should be high on the to-do list. Fortunately for Netflix, the company’s long-standing advantage in understanding user behavior and retention in streaming gives it a blueprint for achieving similar success in gaming. Cloud gaming (which Netflix is already looking to invest in), TV apps that are actually controller-friendly, or a Steam-style storefront that incentivizes integration with Netflix accounts are all things that could solve the company’s two new gaming problems: “how to play these titles” and “why with Netflix?”
Netflix storefront could offer perks to incentivize its use, such as subscription-based bonuses, early access to its owned IP, or cross-platform rewards, all of which would further drive engagement. Together with something like Cloud gaming, the company could lay the foundation for a gaming ecosystem that could compete with offerings like Xbox Game Pass. It’d actually have somewhat of an edge, considering it’d benefit from offering two kinds of media.
Unlocking and Revitalizing WB’s Existing IP
Returning to the games themselves, the potential of Netflix’s new holdings is staggering. LEGO Voyager or something like Batman: The Telltale Series could be adapted onto Netflix almost immediately, offering recognizable, high-quality experiences for both casual and core players. The company can now turn a bunch of incredible legacy content into modern, bingeable experiences that fit perfectly with its “instant access” model, giving it a unique edge over traditional publishers. There’s a wide range of properties that will be available to Netflix for future games, with the biggest being:
- DC
- Game of Thrones
- Harry Potter
- Terminator
- Looney Tunes
- The Matrix
- Mad Max
- Mortal Kombat
- Lord of the Rings and the Hobbit (original film trilogies)
What’s infinitely more exciting for gamers, however, is Netflix’s new access to proprietary systems such as Shadow of Mordor’s Nemesis engine. Netflix could use this tech as a foundation for nearly any new IP or adaptation, creating reactive experiences that would, without a hint of hyperbole, make Scrooge McDuck levels of money. A Batman game where enemies remember and evolve based on previous encounters would immediately garner some respect for Netflix.
The “Actual” Path Forward for Netflix as a Gaming Giant
At the end of the day, owning IP and studios is one thing, but turning them into a cohesive ecosystem that players actually use is another, and nobody yet knows if Netflix even intends to do that. These moves would cost an unbelievable amount of money, it’s true, but if the company could manage it, Netflix has a rare opportunity to leapfrog past years of moderate failure and instantly compete with the biggest names in gaming. Plus, for as much money as it’s made ascending from rental DVDs to streaming, games, and ecosystems that players actually respect would make so much more; just ask companies like Microsoft or Tencent.