Netflix’s plan to jump into video games puzzles Wall Street

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It is indeed, puzzling.

Though there’s long been speculation that Netflix might move into video games, Wednesday’s news that it had hired an executive to lead the effort – and would start adding titles to its streaming platform in the next year – came as a surprise to many. The Los Gatos, California-based company doesn’t have the infrastructure or the expertise to create or support top-tier games, analysts said. And that capability won’t be easy to build.

By experimenting with games, Netflix hopes to give customers one more reason to sign up for its service – and to hang on instead of leaving. It’s expected to start slow with the effort, helping minimise risk. The company has yet to settle on its game-development strategy and may begin with just a few titles, Bloomberg reported Wednesday.

The executive tasked with leading the effort, Mike Verdu, has changed jobs four times in the past 10 years, before moving to Netflix, Pachter noted. And Netflix’s top management isn’t educated about the video-game business, he said. But most people who want to play mobile games can already find a greater variety of them in the Apple App Store or Google Play, Pachter said.

Source: Gaming Daily Report (gamingdailyreport.net)

 

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