Earlier this week, on the fourth quarter 2021 earnings call, Netflix COO and chief product officer Greg Peters commented on the news that shocked the game industry: Microsoft acquired for nearly $70 billion The Activision Blizzard deal.
Peters sees this as a nod to the subscription model Netflix has long championed in entertainment.
I think in a way that’s a nod to our core thesis around subscriptions, it’s a great model for connecting consumers around the world with games and gaming experiences.
In fact, the main driver behind Microsoft’s acquisition is clearly Game Pass. Spencer, Xbox gaming chief, has said that once the deal closes, Microsoft will offer Game Pass subscribers as many Activision Blizzard games as possible.
Microsoft CEO Nadella has previously made it clear that Game Pass is the Netflix for games, which is launched in imitation of Netflix. Netflix’s evaluation is undoubtedly an endorsement of itself. Still, Microsoft has a long way to go before it can say Game Pass is the Netflix of gaming. Microsoft’s game subscription service has just over 25 million subscribers, but Netflix has more than 222 million subscribers worldwide.