Mike Verdu, Netflix’s former head of games, is now leading a new division focused on generative AI for gaming at the streaming giant. In a LinkedIn post on Sunday, Verdu shared his “creator-first vision for AI,” expressing optimism about its potential for transforming game development and empowering teams of all sizes.
“While many view this technology with fear, as a game-maker at heart, I see its potential to unlock creativity and deliver incredible new experiences for players,” Verdu wrote.
Netflix’s games division launched in 2021, but as of September 2023, less than 1% of subscribers had engaged with its games, according to analytics firm Apptopia. In July, Netflix appointed Alain Tascan, formerly of Epic Games, to replace Verdu, and soon after, it shifted focus from complex “Triple-A” games to casual gaming, cutting a few dozen jobs in the process.
Despite these changes, Netflix remains committed to gaming as a small but strategic part of its overall content offering. Co-CEO Greg Peters noted in the company’s second-quarter earnings call that user engagement in games had tripled in 2023. Netflix sees gaming as a tool for increasing subscriber retention, which may explain why the company has avoided adding advertising to monetize its games.
Verdu addressed questions surrounding Netflix Games’ future and his transition, calling out “uninformed speculation in the media.” He said his move was planned, as he realized his strengths were in leading smaller teams. Reflecting on his achievements, Verdu wrote, “Over the past 3 years, I worked with an incredible leadership team to build Netflix Games from the ground up, establishing an internal game studio, a top-notch publishing team, and collaborating across Netflix to bring over 100 games to mobile and now, through cloud streaming, to TVs and PCs in several countries.”
The expansion of generative AI in gaming has raised concerns within the industry, especially among voice actors and motion-capture performers represented by SAG-AFTRA, who went on strike this past summer over AI protections. As of October 26, negotiations continued, with eighty game companies agreeing to the union’s AI conditions.
