Mike Verdu, former head of Netflix’s games division, is now leading a new generative AI gaming unit at the company. In a LinkedIn post on Sunday, Verdu shared that his focus will be on a “creator-first vision for AI,” aiming to support both large and small game development teams with AI-driven tools.
“Many see this technology with fear, but as a game-maker at heart, I see its potential to unlock creativity, deliver extraordinary new player experiences, and take us to new heights,” Verdu wrote.
Netflix launched its gaming division in 2021, though data from Apptopia shows that as of September 2023, fewer than 1% of Netflix subscribers had engaged with its games. After Verdu’s departure, Netflix appointed Epic Games veteran Alain Tascan as head of games in July and redirected its focus from elaborate “Triple-A” games to more casual offerings. The company also laid off a small number of gaming employees.
Despite these shifts, Netflix remains committed to gaming. Executives continue to view games as a complementary piece of their overall content strategy rather than a major revenue driver. During Netflix’s second-quarter earnings call, Co-CEO Greg Peters reported that game engagement had tripled in 2023, adding that games serve to enhance subscriber retention. Notably, Netflix has yet to introduce advertising in its games.
Addressing questions about Netflix games and his transition, Verdu referred to “uninformed speculation in the media” and clarified that his departure from the role was planned. Reflecting on his time at Netflix, he shared that he realized his strengths aligned more with smaller teams. “Over the past three years, I worked with a fantastic leadership team to build Netflix Games from the ground up, from establishing a robust internal game studio and a top-notch publishing organization to collaborating with cross-functional teams to deliver over 100 games, boost engagement, and test cloud streaming to TV and PC in multiple countries. I’m incredibly proud of this achievement,” Verdu wrote.
The rise of generative AI in gaming has raised concerns among industry workers, and sectors across media and entertainment continue to grapple with its implications. Earlier this year, SAG-AFTRA video game voice actors and motion-capture performers went on strike, demanding AI-related protections. By late October, 80 game companies had agreed to the union’s terms, though negotiations were still ongoing.
