Netflix is prioritizing cloud gaming, but co-CEO admits “we still have a lot of work to go do”

Netflix co-CEO Greg Peters has announced it will prioritize cloud-based games as it moves into 2026.

Addressing shareholders via Netflix’s Q4 2025 earnings report, Peters called cloud-based gaming “a big advancement and priority” for the streaming giant, but acknowledged the firm was “still in the early stages of this rollout.”

“Roughly a third of our members have access to TV-based games as a process of upgrading the TV technology and TV clients to be able to handle that,” Peters said (as transcribed by Game Developer), adding that they’d been “really strong uptake” of its party games.

“And recently, with our party games on TV – Boggle, Pictionary, LEGO Party! – we’ve seen really strong uptake. So, it’s off a small base – I think about 10 percent reach into those eligible members – but our TV-based games have enjoyed quite a significant engagement uptick after that Party Pack launch.”

Peters added: “We are just scratching the surface today in terms of what we can do in this space, but we are already seeing multiple instances of how this approach not only extends the audience’s engagement with the service and with the story, but it also creates synergies that reinforces both mediums. So the interactive and non-interactive side. That drives more engagement and more retention.

“Bottom line: we’re very bullish on the opportunity side. We’re seeing progress, but we still have a lot of work to go do. And I should say, like all of our developing initiatives, we’re going to ramp our investment based on demonstrated value to members and returns to the business.”

Netflix is in the midst of acquiring Warner Bros. Discovery. After Netflix announced that it was going to buy Warner Bros, including the company’s games division, for $82.7 billion last month, Paramount Skydance kicked off a hostile takeover bid for the entirety of Warner Bros Discovery, which its board swiftly rejected, not once, but twice.