In an effort to further solidify its position in the gaming sector, Netflix is establishing its own video game studio.
Former Zynga and Electronic Arts executive Marko Lastikka will serve as its CEO and it will be based in Helsinki, Finland.
Previous acquisitions by Netflix include indie game developers like Night School Studio, which created Oxenfree.
However, the king of streaming is now going even farther and starting a studio from scratch.
Lastikka co-founded the Helsinki-based Zynga studio, which produced FarmVille 3 under his direction.
In its first quarterly loss since 2011, Netflix reported a loss of 200,000 customers in April. Its share price fell by 35%, erasing more than $50 billion (£46.5 billion) from the company’s market value.
The biggest subscriber loss in Netflix’s history occurred between April and July 2022, although the company still has more than 220 million subscribers globally.
In March 2022, Netflix acquired Helsinki-based Next Games. It already has a working relationship with the game designer who created a mobile game inspired by the popular Stranger Things Netflix series.
At the time, Michael Verdu, the vice president of games at Netflix, referred to Next Games as “a core studio in a strategic region and a key talent market.”
Helsinki-based game researcher Annakaisa Kultima claimed that this acquisition would have influenced Netflix’s choice.
She continued. They are familiar with Helsinki’s operations as well as Finland’s development culture.
In recent years, Netflix has become increasingly interested in the gaming sector.
It has released a number of video game-themed series, including Cyberpunk: Edgerunners and Arcane (based on League of Legends) (based on Cyberpunk: 2077).
Together, Netflix and Ubisoft will create a live-action Assassin’s Creed television series as well as a mobile game that will only be available on Netflix.
It’s not known if the Netflix gaming company plans to create games only for mobile devices or if it will also pursue the home console market.
Independent industry expert Eric Seufert believes Netflix is investing “quite substantially” in the gaming sector.