Netflix has announced it will open a new game development studio to expand its steadily growing gaming output.

Amir Rahimi, VP of Game Studios at Netflix, published a post on the company website explaining the reasoning behind the new project. He said the development was "another step" on Netflix's journey to "build a world-class games studio that will bring a variety of delightful and deeply engaging original games" to its customers globally. The new studio will be internally run and headed by Marko Lastikka, previously General Manager at Electronic Arts and Zynga. It marks Netflix's second game development studio in the Finnish capital after acquiring Next Games, producer of various The Walking Dead mobile games, earlier this year.

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The statement also reaffirmed the company's commitment to delivering mobile games free of advertisements and in-app purchases, two revenue streams that have become particularly prevalent in recent years. All games released by Netflix are included in its subscription plan, meaning service users can download them at no extra cost.

Netflix entered the mobile gaming market some years ago, seeing its uptake of the medium not as a new revenue stream but as a way to add value to the company's currently-offered subscription plans. It has released numerous titles based on its popular Stranger Things series and original games like the well-received Before Your Eyes, all playable on Android and iOS devices.

The company has also purchased a growing number of game development studios in the past 12 months in a bid to grow its gaming output. In 2021, Netflix acquired Night School Studios, developer of the supernatural mystery Oxenfree, and brought the studio's flagship game to its service earlier in September. A sequel, Oxenfree 2: Lost Signals, was planned for release later this year but Night School Studios recently delayed the game until 2023, saying it needed more time to add localizations and make Oxenfree 2 "truly special."

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Netflix has also worked to include rights for video games and virtual reality products in its various deals with famed TV and film creators. In its 2021 deal with Shonda Rhimes, creator of several hit TV shows like Grey's Anatomy, Scandal and Bridgerton, the company expanded its partnership with Rhimes to include the option of developing virtual reality and gaming projects based on the relevant franchises. While no products in these mediums have been announced, Netflix claims game developers are supportive of the company's expansion into the gaming industry and would be glad for the opportunity to "put all of their creative energy into just great gameplay."

Various mobile games are available now to Netflix subscribers via the Netflix app.

Source: Netflix