Netflix CEO Says Company Will Still Be in Gaming in Five Years, Eyes Cloud Expansion

Netflix co-CEO Ted Sarandos said he expects the streaming giant to still be in the gaming business five years from now, and that the company sees mobile games as a stepping stone toward cloud gaming, which it is far more interested in pursuing. Sarandos made the comments during an interview with Bloomberg's Lucas Shaw at the Screentime event this week.

Asked directly whether Netflix will still host games in five years, Sarandos replied, «I think so.» He described Netflix's push into mobile gaming as «a gateway to cloud gaming,» a segment the company is «much more interested in.» The remarks offer a rare public glimpse into how Netflix's leadership views the long-term role of video games inside a business built primarily on film and television streaming.

Netflix currently offers a catalog of mobile games that subscribers can access at no extra cost and without ads. The lineup includes titles such as Red Dead Redemption, Sonic Mania Plus, and RollerCoaster Tycoon Touch. The company also hosts streaming games playable on televisions, with a focus on family-friendly and party-oriented experiences. Those games are included with a Netflix membership, reinforcing the company's strategy of using gaming as an added benefit rather than a standalone paid product.

The company's gaming ambitions have shifted considerably over the years. At one point, Netflix aimed to produce large-scale AAA titles and hired prominent industry figures to lead that effort. Those plans were later scaled back, with studio closures and staff layoffs, leaving observers uncertain about the company's true commitment to gaming. Sarandos's latest comments suggest the focus has narrowed toward cloud-based and television-centered gaming rather than big-budget console-style development.

Sarandos said cloud gaming makes more sense for Netflix «in a post-console world.» He did not elaborate further, but the phrase points to a future in which more players access games without dedicated hardware such as a PlayStation, Xbox, or Switch. Those consoles have risen in price recently, driven by AI-related component and memory shortages as well as broader global macroeconomic pressures. The cloud gaming market has not grown as quickly as some analysts predicted, but Sarandos is not alone in his optimism. Strauss Zelnick, the head of Take-Two Interactive, the company behind Grand Theft Auto 6, recently said he expects the industry to reach commercial streaming mode within three years.

Sarandos also pointed to broader opportunities for gaming on television, saying Netflix wants to be «early invested in that.» He framed the company's interest in gaming partly as a way to extend its intellectual property and strengthen its brand value. «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,» he said.

On the question of acquisitions, Sarandos was asked whether Netflix might buy a large gaming company to accelerate its ambitions, with the interviewer raising Take-Two or Xbox as hypothetical targets. Sarandos said Netflix has no specific plans to acquire more gaming studios, though he did not rule anything out. He said the company prefers to grow organically rather than buying companies to spur growth. That preference is not absolute. Netflix previously offered billions of dollars to acquire Warner Bros. Discovery before Paramount intervened with a competing deal. Sarandos said Netflix pursued WBD because the company was «so clean» and contained only the assets Netflix actually wanted, which he described as rare. Netflix will consider acquiring game studios if they complement its broader business goals, he added.

Netflix has said it remains in the early stages of its gaming output and that it has «tons more work to do.» The company's financial investment in gaming is tiny compared with its other business lines, though management views the sector as a significant market opportunity. Investors are likely watching closely for new revenue streams. Netflix stock has fallen more than 25% in 2026 so far, adding pressure on the company to demonstrate that its gaming bets can eventually contribute meaningfully to growth.

4Views

Author

Delaney Sawyer

Society Reporter

Delaney Sawyer covers public affairs, politics, business, culture and daily news for Core Memo. The role focuses on verification, context, and clear explanations for readers.

All articles by this author