Netflix isn't giving up on video games. Asked whether the streaming giant will still be hosting games five years from now, co-CEO Ted Sarandos answered simply: "I think so."
Sarandos made the comments during an onstage interview with Bloomberg's Lucas Shaw at the Screentime event this week, where the future of Netflix's on-again, off-again gaming ambitions took center stage.
The co-CEO framed Netflix's mobile gaming push as a stepping stone rather than a destination. The company's move into mobile games was "a gateway to cloud gaming," Sarandos said, an area Netflix is "much more interested in."
Netflix currently hosts a variety of mobile games, including Red Dead Redemption, Sonic Mania Plus, and RollerCoaster Tycoon Touch. The games are included with a Netflix membership and carry no ads. The company also offers streaming games playable on TV, which lean more family- and party-focused.
The company's gaming strategy has shifted dramatically over the years. At one point, Netflix aimed to produce big-budget AAA titles and hired high-profile talent to do it. Those efforts were later wound down, with studios closed and staff laid off, leaving many observers questioning what Netflix actually wanted from gaming.
Sarandos said cloud gaming makes more sense for Netflix "in a post-console world." He didn't elaborate, but the implication is a future where more people play games without dedicated hardware like a PlayStation, Xbox, or Switch. Notably, all of those consoles have gotten more expensive in recent years, driven by AI-fueled component and memory shortages along with broader macroeconomic pressures.
The cloud gaming market hasn't exploded the way some predicted, but Sarandos isn't alone in his optimism. Strauss Zelnick, the head of GTA 6 publisher Take-Two, recently said, "I think we'll be in commercial streaming mode within three years."
Sarandos said there will be "all kinds of opportunities for gaming on the television," and that Netflix wanted to be "early invested in that."
"I like it for IP extension. I certainly like it for brand value, for people who want to spend time on that screen gaming instead of watching, then we have an option for them," he said.
Shaw also pressed Sarandos on whether Netflix might buy its way to gaming relevance by acquiring a major game company, floating Take-Two or even Xbox as hypothetical targets. Sarandos said Netflix has no specific plans to buy more gaming studios, though he didn't rule it out. For what it's worth, Xbox CEO Asha Sharma recently said Xbox is not for sale, and a Take-Two sale would stun the industry.
Sarandos said Netflix prefers to grow organically rather than through acquisitions, though he acknowledged exceptions. He pointed to Netflix's pursuit of Warner Bros. Discovery, saying the company went after it because the business was "so clean" and contained only the assets Netflix actually wanted, a rare combination, before Paramount swooped in with its own deal.
Netflix will consider buying game studios in the future if they complement the company's broader business goals, Sarandos said.
The company has stressed that its gaming output is still in the very early days, with "tons more work to do." Netflix's financial investment in gaming remains tiny compared to its film and series spending, though management continues to describe gaming as a "significant market opportunity." Investors are certainly watching: with Netflix stock down more than 25 percent so far in 2026, the pressure to find new growth engines is real.
