Netflix to launch video games studio after drop in subscribers

Netflix will launch its own video game studio in Helsinki, the company has announced.

The Finland based studio will be led by former Zynga and Electronic Arts executive Marko Lastikka and will be built “from scratch.”

The games made at the studio will not contain adverts or require in-app purchases.

The move comes after Netflix lost almost one million subscribers in the second quarter of the year.

The company said it would introduce a cheaper advertising-based tier to attract new subscribers.

Commenting on the news, Amir Rahimi vice president of Game Studios at Netflix said: “It’s still early days, and we have much more work to do to deliver a great games experience on Netflix. Creating a game can take years, so I’m proud to see how we’re steadily building the foundation of our games studios in our first year and look forward to sharing what we produce in the coming years.”

The streaming giant has previously purchased gaming firms including Night School Studio and Oxenfree. Netflix also purchased Helsinki based Next Games this year.

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