In the competitive mobile gaming sector, Netflix has made a significant mark. The company's decision two years ago to venture into gaming, offering free, ad-free games without in-app purchases, is showing promising results. In 2023, downloads of Netflix Games surged by a remarkable 180%, reaching 81.2 million worldwide across the App Store and Google Play. In the fourth quarter alone, they accounted for 53% of these downloads, a significant increase from 36% in 2022. Sensor Tower's data highlights this growth, showing a steep climb from 28.7 million downloads in 2022 to just 5.2 million in 2021.
Expanding the gaming portfolio
Netflix's strategy has been to develop a diverse gaming portfolio. Initially focusing on casual games and those linked to its popular shows like “Stranger Things,” the company soon expanded by acquiring game studios. These include “Oxenfree” developer Night School Studio and other notable names like Spry Fox, Next Games, and Boss Fight Entertainment. This move catered to a broad range of mobile gamers' preferences.
The company continued beyond acquisitions. It also established studios globally, including one in Helsinki led by a former Zynga GM and another in Southern California headed by Chacko Sonny, a former Blizzard Entertainment executive. As Netflix ventures into cloud gaming, its mobile gaming front continues to gain momentum.
Impact of Grand Theft Auto titles
Netflix's gaming success has been significantly bolstered by the addition of the Grand Theft Auto (GTA) series. Grand Theft Auto: San Andreas, in particular, has become the most downloaded game in Netflix's history. The trio of GTA games – San Andreas, Vice City, and GTA III – collectively accounted for around 17% of Netflix's total game downloads in 2023. The popularity of these titles is evident in their combined 6.4 million downloads within a week of release on Netflix.
Besides the GTA series, Netflix's gaming catalogue is diverse. “Action” games lead the pack, with “Lifestyle” games, including “Too Hot to Handle,” following closely. The “Puzzle” genre, with games like the fairy tale puzzler Storyteller, is also popular among Netflix's gaming audience. Storyteller, in particular, saw significant downloads, surpassing GTA: San Andreas in December 2023.
Future prospects and challenges
Netflix's gaming arm has its challenges. Despite the recent surge in downloads, there's a need for continual release and promotion to maintain momentum. The company responded to this by releasing 40 games last year, including “Monument Valley” and “Oxenfree II: Lost Signals.” Additionally, it's experimenting with TV gameplay and personalised gaming suggestions within its app.
Looking ahead, Netflix is building an AAA studio to develop a multi-platform game based on unique IP. Industry veterans support this initiative and indicate Netflix's commitment to expanding its gaming offerings, with nearly 90 more games in development.
