Netflix is revamping its gaming strategy to win more users. Is it working?

In an office in Hollywood, not far from the Walk of Fame and Sunset Bronson Studios, Netflix chief Alain Tascan revealed new content coming soon to the platform – but it’s neither a TV show nor a movie. This is a new game in which American viewers compete to win thousands of dollars.

The game show, titled “Best Guess Live,” will take place weekdays at 5 p.m. PT, where hosts Howie Mandel and Hunter March will reveal a set of five clues. Mobile game players log in to make their best guesses. The sooner they can guess correctly with fewer clues, the greater their chances of winning a larger share of the prize money. The show, filmed in Van Nuys, is Netflix’s attempt to bring gaming to its audience of more than 700 million viewers.

“Can you imagine where you can not only go play a game, but also win a life-changing amount of money every day, and it takes no time, it’s easy, and you only have your phone? said Mandel, widely known for hosting shows on NBC’s “Deal or No Deal” and “America’s Got Talent.”

The goal is to make gaming on Netflix “as easy as streaming a movie on a Friday, using the same innovative mindset that led Netflix to transform from a company shipping DVDs to streaming movies, shows and now games,” Tascan said.

Netflix has been investing in its gaming sector for four years, with mixed results. Last month, the streamer’s co-CEO Greg Peters gave the company’s gaming efforts a B grade. Under Tascan’s leadership, the division has focused on some key areas, including narratives based on Netflix shows, children’s games, social games and mainstream titles like “Grand Theft Auto.”

The changes seem to be working. The number of Netflix game downloads increased 17% to 74.8 million from January to October this year compared to the same period in 2024, according to data from app analytics firm Appfigures. The company is also publishing fewer games, adding 16 titles this year compared to 35 last year, Appfigures said.

Netflix declined to comment on the Appfigures data.

The company has also removed games in part due to low customer engagement. Netflix released 142 games, of which 78 were still active as of October, according to Appfigures.

Its two most popular mobile games have been released on Netflix in the past two years, including “Grand Theft Auto: San Andreas,” which arrived on the platform in December 2023 and achieved 44 million downloads. The streamer released an original title, the party royale multiplayer title “Squid Game: Unleashed,” last year with 21 million downloads. The game was tied to the second season of the popular series, where players could earn in-game cash or wild tokens if they watched a certain number of episodes.

Some analysts believe there is still room for improvement.

Journalists take part in a gaming demonstration at a Netflix office on Wednesday.

(Netflix)

“It still seems quite experimental,” said Ross Benes, principal analyst at research firm Emarketer. “I don’t feel like they’re on the list of gamers’ favorite sources of entertainment.”

On Thursday, Netflix announced its first slate of five games for television, including Tetris Time Warp, Boggle Party, Pictionary: Game Night and LEGO Party! are now available. Before the new listing, subscribers could only play Netflix games on their mobile devices.

When consumers load the game shows, they will see a QR code that they can scan on their devices and use as controllers in the game. For example, in Netflix’s version of Pictionary, users draw on their phones.

“A big change in strategy is really to make sure that we eliminate any friction that someone may have when they want to play,” Tascan said in an interview. “We think that on television, in particular, where people are enjoying their different shows, it’s the best place to offer something that’s very easily accessible.”

The game shows are the latest iteration of Netflix’s efforts that began four years ago. The company had bolstered its staff after acquiring four gaming companies: Glendale-based Night School, Allen, Texas-based Boss Fight Entertainment, Finland-based Next Games and Seattle-based Spry Fox.

Netflix shut down Boss Fight Entertainment last month.

The games division’s efforts were initially led by Mike Verdu, a former Facebook and Electronic Arts executive. He then moved to a role focused on transforming game development and player experiences through generative AI in November 2024 and left Netflix earlier this year. Tascan, a former Epic Games executive, was named Netflix’s president of games in July 2024.

Video games are an attractive area of ​​investment for some companies, as younger audiences spend a lot of time playing titles like Roblox, Fortnite, and Call of Duty. Tascan estimates that there are 3 billion gamers worldwide and that with Netflix having an audience of more than 700 million people, “the Venn diagram is quite large.”

The streamer also announced new mobile games for kids on Thursday, including a digital coloring book “Barbie Color Creations” and a hairstyling game, “Toca Boca Hair Salon 4.”

It can be difficult for businesses to establish themselves in this sector. For example, in 2023, Google shut down its Stadia gaming service after failing to gain traction with users.

Tascan said Netflix does not compete with traditional game consoles, but seeks to innovate and find new ways to reach its customers.

Tascan said he was encouraged by the reactions he saw.

“It’s a step in the right direction,” he said. “But ultimately, how many people are going to have the same reaction? We are a data-driven company, and our main data is: how many people are going to engage?”

Tascan said he thinks it will be a few years before Netflix becomes the Netflix of games. He hopes the division can move from Peters’ B- grade to a higher level.

“What I hope is that by the end of the year we will move to an A, hopefully A+,” Tascan said.