Netflix is 'seriously exploring' expanding its gaming business with a cloud streaming service

Netflix has more plans to prove how serious it is with its gaming venture, including potentially launching a cloud streaming service in the future. The media streaming giant also announced it is establishing another in-house development studio, this time, based in Southern California.

In an appearance at the TechCrunch Disrupt this week, Netflix VP of Gaming Mike Verdu revealed the company is looking into introducing a Game Pass-like service. Microsoft's subscription-based product has been commonly referred to as the "Netflix of gaming" due to its similar business model that allows members to gain unlimited access to games in the Game Pass library.

Noting that its gaming business is still in its early stages, Verdu noted that Netlfix's cloud-based gaming service would not be presented as a complete alternative to console and PC gaming. “It’s a value add. We’re not asking you to subscribe as a console replacement,” Verdu said. “It’s a completely different business model. The hope is over time that it just becomes this very natural way to play games wherever you are.”

While streaming services have been on the rise in recent years, not every company dipping its toes into this business model has seen great success. Google announced the Stadia shutdown last month and the service's eventual closure in January next year. The lessons from Stadia's fate are not lost on Verdu, but the gaming VP noted that while there were issues with its business model, he considers Stadia a "technical success."

It appears that Netflix's plans for cloud gaming have yet to be finalized. But the company is already showing its seriousness in its gaming business by acquiring developers and establishing first-party development studios. After announcing its first in-house developer based in Helsinki, Finland, Verdu confirmed at the same event that it is also opening a new gaming studio in California.

Verdu did not mention a more specific location for its in-house developer, aside from saying it will be situated in Southern California. But the Netflix exec announced it would be led by former "Overwatch" executive producer Chacko Sonny.

The games that its internal studios will develop are still unknown, but Netflix confirmed it has 14 first-party titles in the pipeline. Verdu also made an appearance during Ubisoft's event last month, where he announced multiple mobile games in development from the publisher's franchises, including "Assassin's Creed."

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