Netflix Announces New Video Game Initiative Utilizing AI After Shutting Down Its AAA Game Studio

Not long after it was announced that Netflix had shut down its AAA video game studio without releasing a single game, they announced their new gaming initiative, and it involves AI.

Netflix is planning "truly novel game experiences" powered by generative AI. The news comes from a LinkedIn post from Mike Verdu, the founder and previous vice president of Netflix Games and now the new VP of "GenAI for Games" at Netflix.

He says: "At long last, I am ready to talk about what I'm doing next: I am working on driving a 'once in a generation' inflection point for game development and player experiences using generative AI.”

He goes on to say this "transformational technology," will "accelerate the velocity of development and unlock truly novel game experiences that will surprise, delight, and inspire players."

This new direction they are headed is also said to run on a "creator-first" system. "Pay no mind to the uninformed speculation in the media about the changes in Netflix Games. What you've seen over the last several months was actually a planned transition."

Verdu added: "I am focused on a creator-first vision for AI. One that puts creative talent at the center, with AI being a catalyst and an accelerant. AI will enable big game teams to move much faster, and will also put an almost unimaginable collection of new capabilities in the hands of developers in smaller game teams."

But, they still ditched Overwatch executive producer Chacko Sonny and God of War Ragnarok art director Rafael Grassetti in favor of this AI direction. These are some incredibly talented individuals, and it’s kind of sad that this is the direction they are taking things, but this is where things are headed.

Here’s the full statement that was shared:

New role at Netflix: VP, GenAI for Games

“At long last, I am ready to talk about what I'm doing next: I am working on driving a "once in a generation" inflection point for game development and player experiences using generative AI. This transformational technology will accelerate the velocity of development and unlock truly novel game experiences that will surprise, delight, and inspire players.

“I am focused on a creator-first vision for AI, one that puts creative talent at the center, with AI being a catalyst and an accelerant. AI will enable big game teams to move much faster, and will also put an almost unimaginable collection of new capabilities in the hands of developers in smaller game teams.

“Over the past 3 years, I worked with an amazing leadership team to build Netflix Games from the ground up, including the creation of a robust internal game studio, establishment of a world class publishing organization, and collaboration with Netflix cross-functional teams to deliver awesome games to Netflix members on mobile and to TVs (and PCs) through the cloud.

“We've delivered 100+ games, increased game engagement by multiples, and rolled out a test of cloud streaming to TV and PC in several countries. I'm very proud of this! However, after starting and selling 3 start-ups and building 3 new divisions in larger organizations, I readily acknowledge that my strength is 0-1, or 0-1,000 in terms of employees.

“When Netflix Games hit scale, I knew the time had come to hand off to someone who can take this enterprise to the next level. Alain Tascan is the right choice to do this. He is already in the process of taking Netflix Games in exciting new directions.

“As for me, I am ready for the next big challenge after the raw primordial act of creation. GenAI is that next challenge. I don't think I've been this excited about an opportunity in this industry since the 90s, when we saw a new game launch every few months that redefined what was possible.

“It was an incredible time to be making games as talented creators showed all of us what the future looked like. Guess what? We're back to those days of seemingly unlimited potential and the rapid pace of innovation, which resulted in mind-blowing surprises for players every few months.

“I can't believe how lucky I am to be alive when a wave this big is about to hit the game industry. Many view this technology with fear, but I am a game-maker at heart and I see its potential to unlock all of us, to create mind-blowing new experiences for players, to lift us to new heights.

“Yes, we'll have to adapt and change, but when have we failed to meet that challenge as an industry? I couldn't be more thrilled to lead this new initiative! Pay no mind to the uninformed speculation in the media about the changes in Netflix Games.

“What you've seen over the last several months was actually a planned transition. And yes, I am completely delighted to be back out on the frontier, trying to put a dent in the universe :)”