Netflix and Microsoft Enter The Gaming Industry

Netflix and Microsoft indicate that video games have become a huge sector that cannot be ignored by the giant tech companies

Less than two weeks after Take Two announced a $12.7 billion deal to acquire Zynga and just days after Microsoft announced a record $69 billion deal to buy Activision Blizzard, Netflix co-founder and CEO Reed Hastings says he aims to build the company’s own video game business that will impress Netflix subscribers as the best in the gaming market. Read more [Take-Two Officially Acquires Gaming Company Zynga] and [Microsoft Buys Activision for $68.7 Billion].

This is a long task for Netflix, which will start building its video game unit from the smallest detail, and of course the company has used general strategies beforehand in the entertainment broadcast business, licensing popular movies and TV shows to help establish its client base as a complementary TV company before creating its own original content.

After years of experimenting with movies and series, Netflix felt that the proposed algorithm and user data predicted the new original content that the market needed, and today the company spends billions of dollars annually on original content, which qualifies it to raise its prices. Read more [Netflix Raises Subscription Prices in Two Countries].

The Microsoft deal and Netflix comments indicate that the gaming industry has become an important part of the global entertainment sector.

The video game sector has jumped to the fore in consumer concerns as Meta and Roblox build strategies around a new consumer computing domain called metaverse that will surely include video games. Read more [The World of Metaphysics Will Be Investable].

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