Netflix’s gaming operations, which had recently shrunk following the sale of Spry Fox, may be on the verge of a substantial expansion. The company announced an agreement with Warner Bros. Discovery (WBD) to acquire its streaming and studios operations in a deal valued at $80 billion. While much of the focus has been on Netflix potentially acquiring Warner Bros.’ film studios and the HBO Max platform, the agreement also includes WB Games.
WB Games oversees some of the most well-known studios in the industry, including Avalanche Software, Rocksteady, TT Games, and Netherrealm. These studios are responsible for major franchises such as Hogwarts Legacy, Batman: Arkham, Lego Star Wars, Lego Batman, and Mortal Kombat. Hogwarts Legacy alone was the best-selling game in the United States in 2023 and has sold over 34 million copies in under three years, highlighting the commercial scale of WB Games’ portfolio.
Limited Discussion on Gaming in the Deal Announcement
Despite the significance of WB Games, Netflix did not focus on the division during its investor presentations or press releases. In a recent investor call, the word “Games” appeared briefly on a slide next to the Mortal Kombat logo. Company representatives confirmed there are no immediate updates about how WB Games will be integrated into Netflix’s existing gaming operations.
Netflix’s current gaming strategy follows a “less-is-more” approach, concentrating on four types of titles: ports of existing hits to mobile, games for children without microtransactions, party games played with phones as controllers, and games tied to Netflix intellectual property. WB Games’ AAA offerings do not fully align with this approach, though there may be potential crossover with properties like Batman or Harry Potter.
Possible Futures for WB Games Under Netflix
It remains unclear how Netflix will manage WB Games if the acquisition is completed. The company could maintain the studios as a separate division, develop premium games tied to its streaming content, or sell off some assets. Regulatory approvals, shareholder votes, and competing bids, such as those from Skydance, could also influence the outcome.
The deal is expected to take 12 to 18 months to finalize, following WBD’s planned corporate split in 2026. This split will separate the assets Netflix is acquiring from other properties, which will form a new public company including CNN, TBS, TNT, and Discovery.
Strategic Implications for Netflix Gaming
Acquiring WB Games would represent a notable shift in Netflix’s gaming strategy, signaling an interest in high-profile, premium studios alongside its existing subscription-based offerings. While Netflix has largely focused on games offered at no extra cost to subscribers, WB Games’ portfolio could expand the company’s presence in the AAA gaming market and open opportunities to integrate popular franchises with streaming content.
Source: Game File
Frequently Asked Questions (FAQs)
What studios are included in WB Games?
WB Games includes Avalanche Software, Rocksteady, TT Games, and Netherrealm, known for titles like Hogwarts Legacy, Batman: Arkham, Lego Star Wars, Lego Batman, and Mortal Kombat.
Will Netflix offer WB Games titles for free to subscribers?
It is unclear at this time. Netflix’s current model offers certain games free to subscribers, but WB Games’ AAA offerings may not fit that strategy.
When will the Netflix-WBD deal be completed?
Executives estimate the deal will take at least 12 to 18 months to close, following WBD’s planned corporate split in 2026.
Could Netflix sell or restructure WB Games?
Yes, possible scenarios include running WB Games as a separate division, selling off parts of the portfolio, or developing AAA titles linked to Netflix IP.
How does WB Games fit into Netflix’s current gaming strategy?
Netflix currently focuses on mobile ports of hits, games for children without microtransactions, party games, and games tied to Netflix IP. WB Games’ AAA titles do not fully align with this strategy but could offer crossover opportunities with streaming content.
