Netflix Acquires Warner Games and Transforms the Gaming Market

Netflix has confirmed its acquisition of Warner Bros. Discovery for $82.7 billion, including its gaming division. With this acquisition, studios like NetherRealm (Mortal Kombat), Avalanche (Hogwarts Legacy), and TT Games (LEGO franchise) are now part of the streaming platform.

The transaction is still subject to regulatory approval in the United States, but it has already raised questions about the future of the franchises in the gaming sector. Netflix believes that the purchase will combine its global reach with the legacy of Warner's productions, such as Harry Potter, the DC Universe, and Game of Thrones.

Internally, the deal is seen as a strategy to strengthen Netflix's entertainment portfolio. However, the specific impact on the gaming sector has yet to be detailed. If the transaction is not approved, Netflix could face a fine of up to $5 billion.

The Influence of the Acquisition on Gaming Franchises

The inclusion of Warner's gaming studios brings significant reach to Netflix within the industry. Studios like NetherRealm, known for Mortal Kombat and Injustice, are now under the direction of a company primarily focused on streaming, which could change their priorities.

Another important question lies in the future of Rocksteady and Avalanche, two developers that have stood out in recent years. The transaction may bring changes to the pace of production and distribution of games.

TT Games, the producer of the LEGO franchise, is also part of the acquisition. Given its popularity among family audiences, changes in business strategy may impact development timelines and agreements with partners.

Netflix aims to expand the reach of Warner’s brands, indicating that synergies between films, series, and games may occur. However, there are no confirmations about possible integrations or exclusives.

Netflix's History with Games is Not Promising

Despite the movement towards the gaming market, Netflix has already faced challenges. The company launched a AAA studio in California called Team Blue, but closed its operations in 2024, laying off renowned developers who were working on a multiplatform project.

Among those laid off were industry veterans like Chacko Sonny (Overwatch) and Rafael Grassetti, former art director of God of War. This decision was attributed to an internal review of Netflix's gaming strategy.

Still, the company maintains its Netflix Games branch, offering more than 100 titles focused mainly on mobile devices. However, less than 1% of subscribers typically use this library, according to data from Apptopia.

With the acquisition of franchises like Mortal Kombat, Batman: Arkham, Hogwarts Legacy, and LEGO, Netflix opens new paths for the future of Warner Games.

What do you expect to happen with these significant franchises now that they are part of Netflix? Share your opinion on Voxel's social media.