Nathan One
Netflix’s Gaming Expansion
January 1, 2021
Netflix Gaming: A Strategy That Needs an App Store
Netflix’s foray into gaming has potential, but without an “app store” model, it’s set to stumble. Let’s unpack why this closed approach could doom it unless they pivot—and what they’d need for wide adoption.
ANALYSIS
User-Centric Design: Gaming could enhance engagement, offering a new way to interact with Netflix’s content universe.
Market Fit: Streaming fatigue is real, and gaming is booming—there’s potential synergy.
Entry Point: Leveraging its massive user base, Netflix could onboard gamers seamlessly through familiar IPs (e.g., Stranger Things games). However, competing with established gaming platforms is a steep hill.
Technological Feasibility: Netflix has the infrastructure, but gaming demands different expertise—latency, graphics, and community features.
Behavioral Science: Users love binge-watching; gaming requires active participation, which may not align with passive viewing habits.
Economic Viability: Bundled with subscriptions, it’s a value add, but monetization is unclear.
Innovation Driver: Netflix is UX-driven, aiming to deepen user engagement with a bold leap.
The Flaw of a Closed Ecosystem
Netflix is currently acting like a game publisher that only releases its own titles. History shows this rarely works:
Limited Scope: Even Nintendo, with its legendary IPs like Mario and Zelda, couldn’t sustain its early platforms without opening up to third-party developers. A small, in-house library risks missing the mark with diverse audiences.
Inefficient Content Creation: Guessing what games will resonate is a crapshoot. By producing everything themselves, Netflix shoulders the full burden of development costs and time—inefficient at best, wasteful at worst.
Why an App Store Changes Everything
Diverse Content: Third-party developers could flood the platform with games, from indie gems to niche hits, appealing to every taste within Netflix’s massive user base.
Market-Driven Success: Let users and developers determine what’s popular. Viral sensations like *Flappy Bird* or *Among Us* came from small teams, not corporate labs—Netflix could harness that energy.
Engagement with IPs: Imagine fan-made games based on Stranger Things or The Witcher. An app store would unlock this synergy, deepening user investment in Netflix’s ecosystem.
Current Approach: Casual Games Won’t Cut It
If Netflix sticks to quick, casual games made in-house, it might keep some subscribers mildly entertained. But wide adoption? Unlikely. Casual gaming is a crowded space—think mobile app stores brimming with free options. Without standout titles or a broader catalog, Netflix won’t break through. It’s a half-measure that lacks ambition.
Prediction and Fix
Without an app store, Netflix Gaming will remain a niche perk, not a game-changer. For wide adoption, they need to open the floodgates to external developers, leveraging their platform’s reach and brand. If they’re content with casual dabbling, the current strategy might suffice—but it’s a missed opportunity for something much bigger.