Netflix is now a sleeping gaming giant. Will it wake up?

It's time to start paying attention to what Netflix does next in the video game space. The company has been making a lot of intriguing moves in that space recently. Some of them are questionable, like the fact that it is shutting down or spinning off some of its previously known game studios. At the same time, Netflix just potentially bolstered its gaming efforts in a major way now that it's in the process of acquiring Warner Bros. Discovery.

If that sale goes through, it's confirmed that WB Games will come under Netflix's ownership. Were that to happen, the power a combined Netflix Games and WB Games would hold would be significant. Within the next few years, Netflix could become a major player in the video game space if it puts in the effort. Whether that's the actual direction Netflix Games is headed in reality is another question entirely.

Netflix Games is bigger than you think

There are a lot of mobile games available through your Netflix subscription

It doesn't get a lot of attention from online gaming communities and media, but the offerings of Netflix Games are surprisingly robust. For several years now, your Netflix subscription has included multiple ad-free mobile games at no additional charge. It has offered a mix of original games, impressive console ports, and ad-free versions of classic mobile games. Just this month, Red Dead Redemption came to Netflix, but you probably didn't know that.

Netflix Games' efforts tend to be overshadowed by the promotion of new shows like Stranger Things 5. It's also a little wonky to redeem Netflix Games, as you still have to technically go through the App Store on iOS or Google Play Store on Android to download the games. Netflix is making some investments in cloud gaming, but those haven't panned out on the level of Xbox Cloud Gaming yet.

I recommend booting up your Netflix mobile app and looking through its gaming library when you have some time. You'll be surprised at what you find. The reality is, Netflix already has several internal gaming studios and is making deals to bring games to the service. On top of that, it will now be adding several WB Games studios to its repertoire post-acquisition.

If the acquisition goes through, by the end of 2027, Netflix will be the owner of Hogwarts Legacy's Avalanche Software, Mortal Kombat's NetherRealm Studios, Batman: Arkham's Rocksteady Studios, Lego Star Wars: The Skywalker Saga's TT Games, and more. It'll control the rights to DC video games, Midway's classics, and video game adaptations of WB's other major franchises. It'll truly be a sleeping giant in the video game industry at that point.

I'm skeptical Netflix Games will fully take advantage of this acquisition

But it has the potential to become a major player if it wants to

Netflix Games is bigger than you think, and is about to become even bigger. That said, I call it a sleeping giant, not a new megapower, for one reason: Netflix is currently in the middle of an identity crisis regarding its gaming efforts. Over the past year or so, it has shut down studios it owned, like Squid Game: Unleashed developer Boss Fight. It also allowed owned studio Spry Fox to go back to being independent earlier this month.

As a recent report by Game File explains, Netflix had tried to make a push into the big-budget gaming space for a bit, but seemingly retreated. Now, it wants to focus on games based on well-known franchises, kids' games, and casual party games that can be streamed to TV. It doubled down on that earlier this month by making games like Lego Party playable through Netflix's TV app. Titles like Mortal Kombat 1 and Suicide Squad: Kill the Justice League don't exactly fit into that plan smoothly.

If WB Games doesn't continue to operate independently post-acquisition, it's fair to assume Netflix Games would assert control over it. As it stands, though, a title like DC: Worlds Collide fits more with Netflix's current video game offerings, and WB Games seems to be in its own kind of turmoil this year with canceled projects, several recent flops, and a lack of DC video games when comic book video games are doing well.

Ultimately, this acquisition is happening at a time when both Netflix Games and WB Games are redefining themselves. Maybe that makes it the perfect time for a merger, but it also makes me skeptical that there would be clear direction if the two companies were to start combining their efforts. Netflix already wasn't able to make itself a major player in the video game industry, and history shows buying your way to the top spot doesn't always work.

Netflix Games could become the next big thing in gaming

Or it could sputter out

In a best-case scenario for Netflix Games, it would bring titles like Hogwarts Legacy, Lego Batman: Legacy of the Dark Knight, and Midway's retro catalog to Netflix Games while using WB Games ' pre-existing structure to become a major player in the AAA space. In a worst-case scenario, WB Games is drastically downsized post-acquisition, and the only real benefits Netflix sees come from the back catalog of games and new IP ownership.

We seem to be approaching a make-or-break point for Netflix Games. The Netflix acquisition of Warner Bros. Discovery is poised to make it a giant within the video game industry that many PC and console gamers might not be aware of at this point. The Microsoft-Activision acquisition definitely taught me to be skeptical of a deal like this.

Still, if you're invested in the video game industry, the actions of Netflix Games throughout the rest of the 2020s will be critical to keep an eye on. Will the sleeping giant wake up, or will it just continue to slumber on its pile of gold?