Is Gaming the Future Growth Engine for Netflix?

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Netflix has launched new gaming titles to engage its audience, serving over 300 million paid households. The recent release of Squid Game: Unleashed coincided with the debut of Squid Game Season 3, and is available for play by non-members to attract new users. The company aims to expand its gaming portfolio, focusing on popular titles and children’s games, with plans to invest in game development targeting a consumer spending potential of $140 billion in the long term.

For the second quarter of 2025, Netflix forecasts a 15.4% revenue increase to $11.035 billion, contributing to an anticipated $43.5-$44.5 billion in revenues for the year, contingent on member growth and higher subscription prices. Year-to-date, Netflix shares have risen by 45.7%, outpacing sector gains of 11.8% and industry returns of 37.7%.

Netflix faces competition from prominent players like Take-Two Interactive and Electronic Arts. Take-Two has upcoming titles such as Grand Theft Auto VI, scheduled for May 2026, while Electronic Arts plans major releases like Battlefield and Skate in fiscal year 2026.

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