At this week’s Screentime event, Netflix co-CEO Ted Sarundos addressed a question that has lingered over the streaming giant’s gaming ambitions for years: will Netflix still be hosting video games five years from now? His answer was measured but clear. “I think so,” Sarandos said, reframing the company’s mobile game catalog not as an end in itself but as what he called “a gateway to cloud gaming” — a category he described as something Netflix is “much more interested in.”
The exchange offered one of the most direct windows yet into how Netflix envisions its place in the video game industry, signaling that the company sees its near-term mobile offerings primarily as a bridge toward a broader, hardware-free future rather than a permanent destination.
A Gateway to Something Bigger
Netflix currently hosts a wide range of mobile games available to members at no extra cost and without s. Titles in the catalog span genres and franchises, including Red Dead Redemption, Sonic Mania Plus, and RollerCoaster Tycoon Touch. The company also offers streaming games playable on televisions, which tend toward family- and party-friendly experiences suited to shared screens.
Yet Sarandos made clear that mobile is not where Netflix’s ambitions ultimately rest. He argued that cloud gaming makes more sense for the company “in a post-console world,” pointing to an emerging future in which players increasingly bypass dedicated hardware such as PlayStation, Xbox, or Nintendo Switch consoles entirely. His comments echo recent market pressures: console prices have risen sharply amid AI-driven component and memory shortages alongside broader macroeconomic trends.
“I like it for IP extension. I certainly like it for brand value, for people who want to spend time on that screen gaming instead of watching, then we have an option for them.”
Ted Sarandos, Netflix Co-CEO
A Winding Path Through Gaming
Netflix’s approach to video games has shifted repeatedly over the years. The company once pursued big-budget AAA titles and recruited prominent industry figures to deliver them, only to later wind down those efforts, closing studios and laying off staff in the process. That retreat left many observers questioning what Netflix truly intended with its gaming division.
The renewed emphasis on cloud streaming suggests a more disciplined strategy. Sarandos noted there will be “all kinds of opportunities for gaming on the television,” adding that Netflix wanted to be “early invested in that.” His optimism aligns with others in the industry, including Strauss Zelnick, head of GTA 6 owner Take-Two, who recently said he expects commercial streaming mode within three years. The cloud gaming market has not yet materialized as some predicted, but executives on both sides remain bullish.
No Immediate Plans for Big Acquisitions
Sarandos was also asked whether Netflix might once again spend heavily to acquire a large-scale gaming company in order to accelerate its ambitions. When the interviewer suggested possibilities such as buying Take-Two or Xbox, Sarandos said the company had no specific plans to purchase additional studios — though he declined to rule anything out entirely.
In practice, those targets appear unlikely. Xbox CEO Asha Sharma recently said that Xbox is not for sale, while a Take-Two going on the market would be equally surprising. Sarandos emphasized that Netflix prefers to grow organically rather than through acquisitions, though he acknowledged this is not an absolute rule — citing the company’s failed bid for Warner Bros. Discover, which it pursued before Paramount ultimately won the deal.
“Netflix went after WBD because the company was so clean,” Sarandos said, referring to how much of that business contained only the assets Netflix actually wanted. He added that Netflix would still consider buying studios if they complement its wider goals.
Looking Ahead
In related cloud gaming news, Microsoft has reportedly canceled its new controller ahead of price hikes to the service soon, underscoring the competitive and financial stakes in the space. Netflix itself remains cautious about its own timeline, having said it is still very early days with gaming output and that the company has “tons more work to do.”.
The financial weight of gaming within Netflix’s broader business remains small relative to other divisions, yet management continues to describe it as a “significant market opportunity.” For investors, however, patience may be wearing thin. Netflix stock has dropped more than 25% in 2026 so far, and shareholders are increasingly eager to see the company find new avenues for growth — with gaming now positioned as one of several bets on its next chapter.
2 comments