Netflix Invests In Using AI To Build Games After Closing Down a Studio

In October, Netflix shut down ‘Blue’, an internal studio dedicated to developing games for the streaming platform. This studio was led by former Blizzard talent and was tasked with creating AAA games, but before producing anything and mere months after a recruitment spree, the studio was shuttered by Netflix.

In recent months, Netflix’s success in the gaming space has come from porting third-party games onto the platform – like the GTA Trilogy. Netflix said at the time that it’s not turning its back on gaming, but it has now been confirmed it’s going in a different direction entirely.

‘Transformational Technology’

In a post on LinkedIn, Netflix’s new VP of GenAI for Games, Mike Verdu, revealed his fresh placement and explained why this is ‘the future of gaming’.

At long last, I am ready to talk about what I’m doing next: I am working on driving a “once in a generation” inflection point for game development and player experiences using generative AI. This transformational technology will accelerate the velocity of development and unlock truly novel game experiences that will surprise, delight, and inspire players.

Verdu explained that GenAI ‘is the next challenge’ on the road to unlocking the ‘unlimited potential and rapid pace of innovation’. He views generative AI as a wave that’s going to hit the gaming industry with an impressive force, despite many viewing ‘this technology with fear’.

He also offered a harsh line against those doubting Netflix’s presence in the gaming space:

Pay no mind to the uninformed speculation in the media about the changes in Netflix Games. What you’ve seen over the last several months was actually a planned transition.

Unfortunately for Verdu, the comments on his post on LinkedIn were rampant with those lashing out against this business decision. The justification for scrapping a studio and laying off workers to invest heavily in GenAI just isn’t there for some. It’s not the first time we’ve seen this in the last year or two, though – but it never gets any easier a pill to swallow.

One user wrote:

I appreciate your effort to quell speculation regarding Netflix’s changes in its gaming division, but recent events deserve a critical look.

The closure of Team Blue after only two years, without releasing a single game and with the departure of key figures like Chacko Sonny and Joseph Staten, suggests a lack of strategic consistency.

Additionally, while generative AI holds potential, many perceive its current use as more of a marketing tactic than genuine innovation.

In the context of layoffs and restructuring, the community expects tangible outcomes rather than just bold headlines. I trust that these challenges will lead to a more solid and demonstrable plan in the future.

Other titanic developers, such as Electronic Arts, have spoken boldly about the future of AI in game development. There are some predictions among executives that AI will soon be responsible for an extremely high percentage of development activities, which paints a scary picture for those on the outside looking in.

What do you think about Netflix’s decision to invest heavily in GenAI? Let us know on the Insider Gaming forum.

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