Netflix is known for its extensive streaming catalog of movies and TV shows, but now the company is looking to expand its reach into the world of videogames. In a bid to compete with industry giants like Microsoft, Netflix is testing out a new videogame streaming service.
At present, this initiative is in its early stages, with only two games available for select customers in the U.K. and Canada. However, this pilot program will allow Netflix to test its technology, including the potential use of smartphones as game controllers.
By bringing its videogames to televisions and personal computers, Netflix aims to directly challenge services like Microsoft’s Xbox cloud-gaming platform. While Netflix has previously dabbled in videogames with limited success, this move represents a more focused push into the gaming market.
Notably, other companies have ventured into videogame streaming without achieving significant traction. Google, for instance, closed down its Stadia game-streaming service earlier this year. Nevertheless, Netflix remains optimistic about the potential of cloud-based technology, which allows games to be streamed directly onto devices without the need for expensive gaming consoles or PCs.
Despite this new venture, Netflix’s shares were down 0.6% in premarket trading on Tuesday, currently valued at $452.32. However, overall, the stock has experienced a 45% increase this year.