Netflix and Microsoft show video gaming has become too big to ignore
Happy young couple from Asian playing video games together in the living room. Happy people enjoying the computer gaming concept.
Blue Planet Studio
Video games are having a moment.
It took less than 2 weeks to complete the transaction. Take-Two announced its $12.7 billion for ZyngaAnd just days later MicrosoftIt was announced record-breaking $69 billion acquisition of Activision Blizzard, NetflixReed Hastings, co-founder and chief executive officer of Netflix, stated Thursday that he is aiming to build video gaming so it can be “amaze” his members with the best content in each category.
Hastings stated, “We must be differentially good at it.” during Netflix’s earnings conference call. Mobile gaming has become a global leader and our producers are some of the most respected in the industry. We have two of the top 10 films today. Now you need to ask yourself what the next step is. We must get the right idea and not be just in it to make it look good.
This is a huge task for Netflix as it builds its gaming business from scratch. Greg Peters, chief operating officer of Netflix said that the company will license intellectual property for “large games” which “people will recognize” in the coming year. Hastings said that Netflix’s “walk, crawl and run” approach to gaming will be used by the company. It uses this strategy to gradually grow its business in order learn user behavior and maximize resources.
Netflix, of course, has used this general strategy before — in streaming video. In order to grow its subscriber base and add more content, the company licensed popular TV shows and movies. Netflix figured its recommendation algorithm could predict the popularity of new original content after years spent experimenting with different films and shows. Netflix is now available worldwide. spends billions of dollars each yearGet originals
It is clear that the Microsoft acquisition as well as Netflix’s commentary are acknowledgments of gaming’s importance in global entertainment. This includes young viewers. Netflix often emphasized this fact. that gaming, such as Fortnite,It competes against its core streaming services for eyeballs.
This isn’t a novel idea. Microsoft owns Xbox since the 1970s. It has not spent $70 billion on anything to buy it., Even a videogame company?
Companies like Microsoft and Intel have made gaming a major focus of their attention. Meta RobloxDevelop strategies around the vaguely-defined immersive consumer computing strategy known as “metaverse,” that will most likely include gaming.
Gaming is now ubiquitous, despite the apparent acquisition rush. Gaming has gained a larger audience through the use of mobile devices and internet play that allows people to connect and play real-time online games. Entertainment Software Association (the U.S. trade association for videogames) claims more people play video games than ever before.
Gaming has been a popular topic for media and tech companies in the past. However, it was not always a success. Disney GoogleListed below are some of the companies that have abandoned their videogame ambitions in recent years. It’s likely that it is too soon to prepare a company for metaverse. entirely unclear what the metaverse encompasses.
Gaming is clearly an important interest for two of the largest technology companies in the world. It’s a significative figure, which probably indicates that more big gaming consolidation is possible.
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