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Netflix reportedly plans to cut spending by $300 million - what does this mean for gaming?

Netflix has reiterated its commitment to its gaming platform, but is it a priority?
Netflix reportedly plans to cut spending by $300 million - what does this mean for gaming?
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Netflix is planning to cut spending by around $300 million due to its delayed plans to cut down on password sharing, reports The Wall Street Journal. As a result of this delay, the expected revenue from the planned (if controversial) decision has been pushed back to the second half of 2022.

Although Netflix has stated that it is not planning to implement layoffs or a hiring freeze, it has urged staff to be sensible with spending, including in relation to hiring new talent.

What does the move mean for the company’s fledgling gaming arm? Netflix first introduced its dedicated subscription service Netflix Games in 2021, and since then the platform has gone from strength to strength, with the company acquiring new studios and collaborating with some of the biggest names in mobile gaming.

What about gaming?

While it’s too early to say whether or not gaming, or any division of the company, will be exempt from cut costs, the company has continuously reiterated its commitment to its gaming platform, with plans to expand outside of its mobile base into other forms of gaming such as PC and console. As such, there’s still plenty of space for Netflix Games to grow, especially given the breadth of first-party content the company can draw from, including titles that have already seen significant success in the world of gaming such as Stranger Things.

With Netflix Games overcoming its initial struggles with user engagement to become a force to be reckoned with in the games space, any significant cuts seem somewhat premature, especially given the significant investment the company has already put into the development of its gaming arm. Notably, the company has announced that 41 new titles are coming to the platform in 2023. With all this in mind, while cuts to gaming are certainly possible, Netflix’s continued commitment to gaming makes it likely that this will come as a last resort, with underperforming sectors being the first on the chopping block.

We listed Netflix as one of the top 50 mobile game makers of 2022.