Netflix Says It Will Still Be in Gaming in Five Years, With Cloud Play as the Real Goal

Netflix isn't walking away from video games, at least according to its co-CEO. Speaking at the Screentime event, Ted Sarandos was asked by Bloomberg's Lucas Shaw whether Netflix would still be in gaming five years from now. His answer was a short "I think so," followed by a clearer picture of where the company wants to go.

Sarandos described Netflix's mobile games as "a gateway to cloud gaming," which he said the company is "much more interested in." He argued that cloud gaming makes more sense "in a post-console world." He didn't spell that out, but the implication is a future where fewer people rely on a PlayStation, Xbox or Switch. Console prices have climbed lately, driven by component and memory costs tied to the AI boom and broader economic pressure.

Netflix currently offers a mix of mobile titles, including Red Dead Redemption, Sonic Mania Plus and RollerCoaster Tycoon Touch. They come with a subscription and carry no ads. The service also runs TV-based streaming games aimed more at families and parties. Sarandos said he sees "all kinds of opportunities for gaming on the television" and wants Netflix "early invested in that." He framed games as a way to extend its IP and add brand value, and as an option for viewers who want to spend screen time playing rather than watching.

The strategy has not been a straight line. Netflix once chased big AAA games and hired well-known names to build them, then closed studios and cut staff. That left plenty of observers unsure what the company actually wanted from games.

Other industry figures are betting on streaming too. Take-Two chief Strauss Zelnick recently said, "I think we'll be in commercial streaming mode within three years." Still, cloud gaming hasn't taken off the way some predicted. Separately, Microsoft has reportedly canceled a new controller for its cloud service ahead of upcoming price increases.

On acquisitions, Sarandos was asked whether Netflix might buy a giant like Take-Two or Xbox. He said there are no specific plans to buy more game studios, though he wouldn't rule anything out. For context, Xbox CEO Asha Sharma has said Xbox isn't for sale, and a Take-Two sale would be a major surprise. Sarandos said Netflix prefers organic growth, but isn't dogmatic about it. He pointed to its bid for Warner Bros. Discovery, which he said appealed because the company was "so clean" and held mostly assets Netflix wanted, before Paramount struck a deal. Netflix will consider studios that fit its wider goals.

Netflix has said it has "tons more work to do" in games, and its spending there is tiny compared with other parts of the business. Management still sees a "significant market opportunity." With the stock down more than 25% in 2026 so far, investors will be watching closely for new ways for the company to make money.