Image: Netflix
Just over two years ago, Netflix made an intriguing foray into the gaming industry, pledging to offer games that were both free and devoid of ads or in-app purchases. Fast forward to 2023, and the gamble seems to be paying off. According to market intelligence firm Sensor Tower, Netflix Games experienced a remarkable 180% year-over-year increase in downloads. Over the course of the year, these games were downloaded a staggering 81.2 million times worldwide, with the fourth quarter accounting for about 53% of these downloads. This is a significant uptick from the 36% attributed to fourth-quarter downloads in 2022, which had 28.7 million game downloads, compared to 5.2 million in 2021, as estimated by Sensor Tower.
What began as a modest effort with casual games and titles linked to Netflix's hit shows, such as "Stranger Things," quickly evolved. Netflix acquired game studios like Night School Studio (developers of "Oxenfree"), cozy games developer Spry Fox, Next Games (publishers of a "Stranger Things" game), and Boss Fight Entertainment, founded by former Zynga Dallas and Ensemble Studios employees. These acquisitions were part of Netflix's strategy to create a diverse portfolio of games tailored to various mobile gamers' preferences.
Amid its ventures into cloud gaming, Netflix is also making headway in the mobile gaming sphere. One notable addition, Grand Theft Auto: San Andreas, launched mid-year and has already become Netflix's most-downloaded game to date. GTA: Vice City and GTA III also made it to Netflix's list of top downloads for 2023. These GTA games collectively garnered over 6.4 million downloads in under a week upon their arrival on Netflix and accounted for about 17% of Netflix's 2023 gaming downloads. The popularity of the GTA titles propelled "Action" games to the top genre on Netflix, while "Lifestyle" and "Puzzle" genres followed closely.
Image: Appfigures
Despite these achievements, maintaining interest and regular game releases are essential for Netflix's gaming aspirations. Regular content drops and promotion are crucial to sustaining momentum, as seen with the decline in daily game downloads after the initial GTA releases.
To bolster its gaming endeavors, Netflix is constructing a AAA studio to develop a cross-platform game based on unique intellectual property (IP). This ambitious project signals Netflix's commitment to expanding its gaming portfolio, which currently consists of 89 games across various platforms.
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