Netflix has undertaken efforts over the years to increase its footprint in the world of video games, but it's been a bumpy road, and new data suggests that the company is falling short of its targets.
According to a Netflix memo seen by The Wall Street Journal, only 3.5% of Netflix's subscribers play games monthly. That's 10% behind Netflix's 2026 target for "reach and engagement" for games, the memo said. In 2022, it was reported that fewer than 1% of Netflix subscribers played games on Netflix.
Getting deeper into games is part of Netflix's effort to increase engagement, and it's not the only measure that Netflix has undertaken. The company has also expanded to live sports and podcasts.
Netflix's priorities for gaming have bounced around over the years. At one point in time, Netflix was planning to create AAA games and hired big-name talent. However, Netflix later backtracked, and today the company focuses more on mobile and social games.
Recently, co-CEO Ted Sarandos was asked if Netflix will abandon gaming entirely in the future, and he doesn't think the company will, at least not soon. Sarandos said gaming is appealing to Netflix because, for example, someone who just finished a Netflix show can stay engaged with the brand through Netflix's tie-in games connected to those franchises. Beyond tie-in games for Netflix properties like Stranger Things and Love is Blind, Netflix commissions new games like Unhinged and The Conjuring: Unspoken.
The streaming giant also made a big play in gaming this year by hosting the GTA 6 Extended Look trailer, and it worked to get people to sign up for Netflix and watch on the platform. Netflix previously worked with Take-Two to bring GTA games to the platform. Red Dead Redemption from Take-Two's Rockstar division remains available to play on Netflix.
These new details about Netflix's efforts in gaming come amidst a big shakeup at the company--a number of top executives were let go, or left, earlier this week ahead of Netflix's latest earnings report today, October 20. Netflix's stock price is down 23% this year and 43% over the past 12 months, and investors called on management to make changes to help the stock go back up.
Beyond the executive departures, Netflix laid off 1,000+ people recently, which worked out to about 6% of the company's total workforce; this was the largest round of layoffs in Netflix's history.