Netflix CEO Ted Sarandos: Gaming Is Here to Stay, Cloud Is the Goal

Ever wonder if Netflix's gaming push is just a phase? At the Screentime event this week, Bloomberg's Lucas Shaw asked Netflix co-CEO Ted Sarandos straight up: will Netflix still be in gaming in five years? His answer was simple: "I think so."

That's a pretty big vote of confidence for a company whose gaming ambitions have bounced around like a pinball. Remember when Netflix wanted to make big AAA games and hired major talent? That didn't last. The company later shut down studios and laid off staff, leaving everyone scratching their heads about what Netflix actually wanted from games.

But Sarandos made it clear where the real interest lies: cloud gaming. He called Netflix's mobile gaming push "a gateway to cloud gaming," which is something Netflix is "much more interested in." In other words, those mobile titles you can play right now—like Red Dead Redemption, Sonic Mania Plus, and RollerCoaster Tycoon Touch—are just the warm-up act. They're included with your Netflix membership and have no ads, which is a nice bonus.

Netflix also hosts streaming games you can play on your TV, and those tend to be more family- and party-focused. Sarandos said there will be "all kinds of opportunities for gaming on the television," and Netflix wants to be "early invested in that." He added, "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."

So why cloud gaming? Sarandos said it makes more sense for Netflix "in a post-console world." He didn't go into detail, but it sounds like he's picturing a future where fewer people rely on dedicated hardware like a PlayStation, Xbox, or Switch. Those consoles have gotten more expensive lately due to AI-fueled component and memory issues, plus broader economic trends. The cloud gaming market hasn't exploded like some predicted, but Sarandos isn't alone in his optimism. Strauss Zelnick, head of GTA 6 owner Take-Two, recently said he thinks we'll be in commercial streaming mode within three years.

What about buying a big gaming company to speed things up? Sarandos was asked if Netflix could scoop up Take-Two or Xbox. He said Netflix has no specific plans to buy more gaming studios, though he's not ruling anything out. For context, Xbox CEO Asha Sharma recently said Xbox is not for sale, and Take-Two selling itself would be shocking. Sarandos said Netflix prefers organic growth over acquisitions—though that's not a hard rule. Netflix did offer to buy Warner Bros. Discovery for many billions before Paramount swooped in. Sarandos explained Netflix went after WBD because it was "so clean" and contained only the elements Netflix wanted. Netflix will still look at game studio opportunities if they complement its wider business goals.

It's worth noting Netflix has said it's still very early days for its gaming output, with "tons more work to do." The financial investment in gaming is minuscule compared to Netflix's other areas, but management sees it as a "significant market opportunity." Investors are surely hoping for new revenue streams, especially after Netflix stock crashed more than 25% in 2026 so far.

So, will Netflix still be in gaming in five years? Sarandos thinks so—and if cloud gaming finally takes off, he might just be right. What do you think? Will you be playing Netflix games on your TV someday?