Netflix just buys an entire game developer Next Games
Netflix is depositing tens of million euros for a game maker with a significant portfolio of mobile games.
It’s no secret that Netflix is flirting with the wildly popular hobby of gaming. Every now and then a small nod to digital entertainment was given, but now it is for the first time hard cash. The streaming service is depositing no less than 65 million euros for game developer Next Games.
Netflix buys Next Games
It is the first time that Netflix actually buys a game maker, let alone for the decent amount. Okay, it’s not Microsoft taking over Activision Blizzard, but still. Netflix explains to Tech.eu what is hidden behind the substantial investment.
We are pleased to have Next Games join Netflix as a cornerstone of a strategic market. This increases our internal possibilities for game production.
Although we have only just started with games, I am convinced that the partnership with Next Games will enable a portfolio of world-class games.
Netflix CEO Michael Verdu
Freemium Money Machine
Next Games is not just another purchase for Netflix. The Finnish game maker has already built up a considerable portfolio. For example, the company made two exclusive The Walking Dead games and a Stranger Things game.
It is therefore not surprising that the game maker earned almost 30 million euros in games in 2020. In all cases, these are freemium mobile games; 95% of all revenue was earned through microtransactions.
Let’s hope Netflix’s video games become a bit more substantive and not an obvious money laundering…
Also read: Official: Netflix provides free games with subscription
