Netflix LogoSource: Netflix

What you need to know

  • Netflix is starting to expand into video games, with the subscription service looking to add original gaming content to its portfolio.
  • Netflix is acquiring its second game development studio, Next Games, a mobile game studio in Finland.
  • Netflix previously bought Oxenfree developer Night School Studio.

Netflix is continuing its growth in the video game market, purchasing a second game studio for its talent pool, as shared on Wednesday.

In a press release, Netflix confirmed that it is acquiring Next Games, a Finnish mobile studio. Shareholders are slated to receive €2.1 in cash per share, for a total of €65 million, or roughly $72 million. The deal is currently schedued to close sometime in the second quarter of 2022.

"We have had an unwavering focus to execute on our vision: to become the partner of choice for global entertainment businesses and craft authentic and long-lasting interactive entertainment based on the world's most beloved franchises," said Teemu Huuhtanen, chief executive officer at Next Games.

Next Games previously worked on some licensed games, including Stranger Things: Puzzle Tales and The Walking Dead: No Man's Land. The team consists of around 120 employees located in Helsinki, Finland, significantly expanding the game development workforce at Netflix.

"We are excited for Next Games to join Netflix as a core studio in a strategic region and key talent market, expanding our internal game studio capabilities. While we're just getting started in games, I am confident that together with Next Games we will be able to build a portfolio of world class games that will delight our members around the world," said Michael Verdu, vice president of games at Netflix.

Netflix previously acquired Oxenfree developer Night School Studio, which is currently working on Oxenfree 2. This comes at a time of massive consolidation across the gaming industry, as Microsoft is working to acquire publisher Activision Blizzard for almost $69 billion, while Sony is purchasing Destiny developer Bungie for $3.6 billion.