Netflix Acquires Video Game Developer to Further Gaming Ambitions

After signaling to investors last quarter that it was in the “early stages” of an expansion into video games, Netflix is making its ambitions official by acquiring a video game studio. Top line The streaming giant said Tuesday that it is acquiring Night School Studio, an independent video game developer best known for its critically-acclaimed debut, Oxenfree. The deal, financial terms of which were not disclosed, will mean that Night School Studio will begin creating games that will be available for free as part of a Netflix membership, in addition to completing its work on the Oxenfree sequel. “Night School wants to stretch our narrative and design aspirations across distinctive, original games with heart,” studio co-founder Sean Krankel said in a statement about the acquisition. “Netflix gives film, TV, and now game makers an unprecedented canvas to create and deliver excellent entertainment to millions of people. Our explorations in narrative gameplay and Netflix’s track record of supporting diverse storytellers was such a natural pairing.” Between the lines The acquisition of the video game studio is the first deal of its kind for Netflix, and it offers a hint as to the kind of ambitions the streaming service has in the video game space. Night School Studio’s Oxenfree is a supernatural narrative-heavy supernatural thriller that features exploration and multiple endings; other titles in the Night School Studio portfolio include Afterparty, a similarly structured multiple-ending game with heavy dialogue options and a rich narrative. The studio also has experience creating mobile games, including one set during the first season of the acclaimed USA TV series Mr. Robot and, according to The Verge, a shuttered Stranger Things choice-based game. “Their commitment to artistic excellence and proven track record make them invaluable partners as we build out the creative capabilities and library of Netflix games together,” said Netflix vp of game development Mike Verdu, who joined the company earlier this year to help shepherd the company’s gaming ambitions, in a statement. Bottom line The acquisition will help bolster Netflix’s ability to forge ahead in gaming, which it has identified as the path to continued user growth and engagement as streaming usage continues to level out and as some consumers indicate a desire to dial back their screen time. Netflix will also “continue working with developers around the world and hiring the best talent in the industry to deliver a great collection of exclusive games designed for every kind of gamer and any level of play,” Verdu said. The streamer is already testing what a gaming experience on the platform will look like. In August, it began testing mobile gaming for users in Poland using Android devices, and just this week, it expanded that test to Netflix users on Android phones in Spain and Italy. As Domestic Growth Stalls, Netflix Plots Video Game Expansion