It used to be that when you rented movies, you could generally rent video games in the same place. Those days are largely past now, but at Netflix (NASDAQ:NFLX) they’re making something of a comeback. In fact, Netflix is up over 3.5% in Wednesday afternoon’s trading thanks to its latest developments and a whole slew of new games set to come. By the end of 2024, reports note, Netflix plans to have 86 games available for its subscribers to play, and access to the gaming pool comes with every level of membership.
No ads, no microtransactions, and no further fees; that’s the promise Netflix makes with its gaming. But what kind of games will Netflix rollout? Well, that’s a different issue. On tap is a sequel to “Cozy Grove”, Netflix’s life simulator, as well as “FashionVerse,” billed as “…the first AI-enhanced, 3D mobile fashion game featuring models in photo-realistic scenes….” Also, look for “Chicken Run: Eggstraction,” “The Dragon Prince: Xadia,” “Harmonium: The Musical,” and several others to come.
Development Isn’t Stopping There
While Netflix’s gaming ambitions are certainly on the rise—especially for a streaming video provider—it’s actually just getting started. It’s got 84 games coming out this year, yes, but there’s another 90 games that are currently in development. One of the planned releases is a game based on the “Squid Game” universe, which is absolutely not a surprise given the popularity of that series. While it doesn’t look like Netflix’s gaming ambitions will give, say, Microsoft (NASDAQ:MSFT) a run for its money, it’s still a clear value-add for Netflix and a way to keep subscribers in the fold.
Is Netflix Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 24 Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 50.96% rally in its share price over the past year, the average NFLX price target of $467.93 per share implies 2.56% downside risk.
