Streaming major Netflix (NASDAQ:NFLX) is looking to make deeper inroads into the video game industry, according to the Wall Street Journal. Reportedly, the company is pushing to develop games based on its hit programs, such as Squid Game, Wednesday, and Black Mirror. It already offers a chess game based on fan-favorite The Queen’s Gambit.
Until now, Netflix has focused on mobile gaming. However, it is moving to higher-end gaming that can be streamed from TVs or computers. At present, Netflix does not monetize games on its platform and uses gaming to retain subscribers. Nonetheless, its games have seen 70.5 million worldwide downloads as of September 30.
To take these numbers to the next level, Netflix may have to boost investments and attract talent. In its gaming push, the company has so far acquired Night School Studio, Boss Fight Entertainment, and Next Games.
Some on Wall Street, though, have cast doubts over Netflix’s push into gaming, and the company’s third-quarter numbers on October 18 will be keenly watched. Analysts expect the company to deliver an EPS of $3.49 on revenue of $8.54 billion for the quarter. In the year-ago period, its EPS of $3.10 had comfortably outpaced estimates of $2.14.
What is NFLX’s Price Target?
Overall, the Street has a Moderate Buy consensus rating on Netflix. The average NFLX price target of $457.50 implies a 27.8% potential upside.
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