Uncover the Latest News on Netflix Expands to Gaming, A Game Industry Veteran on NFT’s, and Nintendo Stock Split to Attract Investors

In today’s video gaming news, uncover the news about Netflix Inc. is intensifying its drive into video games in response to rising pressure to stem alleviate the loss of subscribers. The business is constructing its own internal video gaming studio in Helsinki to produce games for its nascent offering, which enables users to download and play games. Meanwhile, James Zhang, a 24-year veteran of the video game industry — first as an artist, then as a founder and investor, talks about making the art behind popular NFTs. Lastly, in order to attract new investors, Nintendo executed its previously announced 10-for-1 stock split, which reduced the price of a single share.

Netflix Expands Games to Retain Users

Original Source: Netflix deepens involvement in gaming in efforts to retain subscribers

Netflix is expanding into video games to alleviate subscriber losses.

The business is constructing its own internal video game studio in Helsinki to produce games for its new mobile offering. The catalog has 32 games and will have 50 by year’s end.

Netflix’s piecemeal approach to extending its gaming presence may be more effective than other Big Tech corporations’, but analysts warn the undertaking could be difficult.

“While Netflix’s leadership have been loud about investing in gaming, I’m doubtful about the company’s potential success,” said Strategy Analytics’ Michael Goodman.

Subscriptions

Netflix’s gaming expansion comes as its core video streaming business struggles. After losing subscribers for the first time in almost a decade in the first quarter, the corporation dropped another million in the second.

“Netflix needs a new approach to recoup its losses because raising prices is no longer a viable option,” said Goodman.

Netflix’s shares drop 60% in 2022 on subscriber losses, making it one of the Nasdaq’s worst performers. The stock ended the year at $602.44, up from $239.71 on Sept. 29.

Netflix will debut ad-supported packages in early 2023 to reenergize growth. Goodman said this strategy may increase subscribers in the short term, but not in all markets.

“Advertising funds are not guaranteed in every place Netflix is present in, so they need more ways to stand out” Netflix may deliver games for free on higher-priced tiers and charge extra for lower-priced tiers to preserve value.

Long-term, gaming would help Netflix retain subscribers, said Third Bridge’s Jamie Lumley.

Lumley said a growing library of games may keep some members interested enough to renew, but may not attract new ones.

The organization needs to improve its current offering. Apptopia reports that 30 million people have downloaded Netflix’s games. Less than 1% of the company’s 221 million subscribers have played the games.

Lumley said the impact on the balance sheet is “essentially a rounding mistake.”

M&A gaming

Netflix now has four in-house gaming studios with the addition of Helsinki. After acquiring Night School Studio in September 2021, the business bought Next Games and Boss Fight Entertainment in March.

Buying smaller mobile-focused developers and producing their own games shows Netflix’s ambition, says Neil Barbour of Kagan, an S&P Global Market Intelligence media research organization.

“Growing your own games internally can be more successful than buying a studio,” Barbour added. Premium content that people can’t obtain elsewhere or haven’t seen before is the best way to grow a following.

If Netflix keeps on its current pace, the benefits of gaming for its market share may take a while to appear, Barbour added.

“There are still Activision Blizzard and ZeniMax-sized companies they could acquire to grow. Regulatory scrutiny and recessionary factors could impede a large tech purchase “said Barbour.

Netflix has forced to tighten its belt after the first two quarters of the year, so big acquisitions are unlikely, said Lumley.

“Netflix will be leery of spending too much for a big game developer,” Lumley added. If they made a major acquisition, it would imply that they aim to establish a product that isn’t just a tiny add-on function, but a more ambitious approach to grow subscribers.

Cloud-streaming

Netflix could grow its cloud gaming business. Recent job advertisements show the corporation is hiring for cloud gaming positions, which entail streaming games rather than downloading them.

A Netflix spokeswoman denied to confirm cloud gaming plans.

Microsoft Game Pass, PlayStation Plus, and NVIDIA GeForce Now are significant cloud gaming services. These services let people to play games on a number of devices without buying pricey gear. Kagan predicts cloud gaming revenue will reach $3.44 billion in 2022.

Some have trouble penetrating the space. Alphabet’s Stadia failed to attract enough players after nearly three years. Kagan says the program peaked in 2021 with 2.6 million users.

“While Netflix has the technology and consumer base to broadcast content, there’s a big difference between video and game streaming,” Barbour said. Microsoft and Nvidia have worked for years and are nearing consumer usability.

Lumley said Netflix had a possible advantage over Alphabet: monetizing IP.

Lumley suggested Netflix’s original programming and franchises might be turned into games. Disney has turned several franchises into profitable gaming collaborations, and Netflix has similar prospects.

A Video Game Veteran on NFT Art

Original Source: A video game industry veteran on making the art behind popular NFTs

James Zhang is a 24-year veteran in the video game industry as an artist, founder, and investor. Zhang started his career as a concept artist at Star Wars video game studio LucasArts.

Zhang claimed Concept Art House has helped ship over 1,000 games since its founding 14 years ago. In 2021, the company narrowed its focus to serving web3 video game developers because Zhang saw prospects there.

“Over the last two years, we’ve completely shifted to web3,” Zhang remarked.

Zhang says Concept Art House has worked with both creative brands and crypto-native startups lacking gaming and art experience. The company has partnered with NFT giant Dapper Labs and comic book artist Frank Miller, known for “The Dark Knight Returns.” Last October, it secured $25 million from investors such Axie Infinity founder Jeff ‘Jiho’ Zirlin.

Despite Concept’s web3 successes, the crypto bear market has struck NFTs hard in recent months, making its work harder. Zhang said crypto winter has had three key effects on his business: low token values have made customers more hesitant about buying NFTs; venture investment has to last longer; and fresh token releases are no longer a major motivator for NFT growth.

Zhang helps artists commercialize their web3 skills.

“We want to develop a powerful artists’ network that can certify and identify artists’ web2 and web3 work. Instead of one IP, we want to develop a web3 artist-friendly platform, Zhang stated.

Seneca, who illustrated the Bored Ape Yacht Club project, has complained about not being payed well.

Zhang says artists are both “underpaid and paid what they’re worth” He feels artists can increase their compensation, and web3 can help.

Financially aware, community-minded artists have more power. They require fewer middlemen. That’s blockchain’s promise, said Zhang.

“In the future, most professional artists will face a fork in the road: do you want to understand finances, your position in it, your role in the community, and your role in technology and contribute as a highly talented artist? Or just paint and draw well?”

You may listen to the whole audio to hear Zhang’s opinions on how artists might position their skills in web3 and on intellectual property and ownership issues in the NFT environment.

Nintendo’s 10-for-1 Stock Split Attracts New Investors

Original Source: Nintendo carries out 10-for-1 stock split to lure new investors to the Japanese gaming giant

Nintendo completed its 10-for-1 stock split on Thursday, cutting the price of a single share to attract new investors.

The Japanese Stock Exchange reflected the split in Nintendo stock prices. Thursday’s closure for Nintendo shares was 6,043 yen ($41.76), down from 59,700 on Wednesday.

Nintendo fell more than 1% in Asia on Friday.

Each share of Nintendo stock has been split into 10, lowering the per-share price.

It’s meant to attract more investors. Japanese investors must buy 100 shares of a company. At Nintendo’s original share price, it would cost 5.97 million yen, or $41,200. With the split, 100 shares would cost 604,300 Japanese yen or $4,170 at Thursday’s closing price, making Nintendo more affordable.

6 million yen is enough to fund a student’s four-year education at a Japanese institution, says Serkan Toto, CEO of Tokyo-based Kantan Games.

“As a consumer-facing firm with a great brand, Nintendo needed to lower its share price.”

Now, Nintendo is more affordable, especially for younger investors, who have been expanding in Japan.

In recent years, Apple and Amazon have split their stocks. While stock splits don’t change the corporation, they make buying shares cheaper.

The split comes amid headwinds in the video game business for 133-year-old Nintendo. Nintendo’s operational earnings plummeted 15% in the second quarter, and Switch sales also fell. The Japanese gaming giant’s supply chain issues are limiting Switch sales.

Nintendo games appeal to a large audience. The company announced last month that Splatoon 3 sales in Japan topped 3.45 million units in the first three days, a local record for Nintendo Switch software. On Sept. 9, Splatoon 3 was released.

In the following months, Nintendo will release popular titles like a new Pokemon game.

Summary of Today’s Computer Gaming News

Overall, Netflix Inc. is pushing into video games to alleviate customer losses. The company is constructing its own internal video game studio in Helsinki to develop games for its new mobile game service. The inventory of 32 games will grow to 50 by the end of the year. Netflix’s piecemeal approach to extending its gaming presence may be more successful than other Big Tech corporations’, but analysts warn it could be an uphill battle.

On the other hand, James Zhang, a 24-year video game veteran as an artist, founder, and investor, discusses NFT arts. Zhang started his career as a concept artist at Star Wars video game studio LucasArts. Zhang claimed Concept Art House has helped ship over 1,000 games since its founding 14 years ago. In 2021, the company narrowed its focus to serving web3 video game developers because Zhang saw prospects there.

Finally, Nintendo split its shares 10-for-1 on Thursday to entice new investors to the Japanese gaming company. Japanese Stock Exchange prices reflected Nintendo’s separation. Nintendo shares closed Thursday at 6,043 yen ($41.76), down from 59,700 on Wednesday. Friday afternoon in Asia, Nintendo shares fell more than 1%. Each Nintendo share has been split into 10, reducing the price per share. 

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