Tech

Netflix/Amazon: video games market has tech giants fighting over the controls

A new frontline has opened up in the battle to dominate digital entertainment. Netflix announced earlier this summer that it is challenging video games.Acquired a game developer last month Night school studio Undisclosed amount.Amazon, which has invested hundreds of millions of dollars in games, has finally hit a new online game new world..

The video game industry has become one of the most popular and profitable entertainment in the world. Video games generated approximately $ 178 billion in global revenue last year, according to market research group Newzoo. That number is projected to exceed $ 200 billion by 2023.

For Amazon and Netflix, adding games to your platform can attract more subscribers. Or at least discourage existing people from leaving. Netflix after a pandemic-induced surge in users Dropped 430,000 subscribers In the US and Canada in the second quarter.It has regained some of these Third quarter. Netflix has said in the past that the Attention Economy competes with video games as much as its rival video streaming services.

However, games are a difficult market to enter.For all blockbusters such as Mine Craft Also Fortnite There are thousands of flops. Netflix wants to take advantage of the success of the show, including: Stranger Things For video game hits. But a good game needs more than a recognizable name. Development requires a variety of infrastructure and talent.

Ask Disney. Entertainment Jaguar Note closed the game studio in 2016 and moved to a licensed model.Amazon — Its game push includes the acquisition of nearly $ 1 billion in video streaming service Twitch and the launch of game streaming service Luna — at least four video games canceled or terminated new world..

Well-established game makers such as Nintendo, Sony, and Microsoft all make money by selling games and consoles.Mobile games that can be played for free like Roblox When Fortnite Have users make in-game purchases. Netflix’s plan is to add games for free and attract more subscribers as a loss leader.

Sweet spots may not be at all in making games. Apple and Google sell and distribute games from the app store, saving up to 30% on each sale. It’s no wonder that established game makers are more interested in mediators than newcomers.

A popular newsletter for premium subscribers is published twice a week. On Wednesday, we will analyze hot topics from financial centers around the world. On Friday, we analyze the big themes of the week.Please sign up here..

Netflix/Amazon: video games market has tech giants fighting over the controls Source link Netflix/Amazon: video games market has tech giants fighting over the controls

Related Articles

Back to top button