Netflix Embraces AI in Gaming Following Major Studio Closure

The company shifts focus to generative AI for game development, sparking debate after shutting down its AAA game studio.

Netflix announced a new initiative to use generative AI in game development, led by Mike Verdu, the VP of GenAI for Games.
This move comes shortly after the closure of Netflix's AAA game studio, which resulted in the layoff of 35 employees, including industry veterans.
Verdu claims that generative AI will accelerate game development and enable novel experiences, despite concerns about job displacement.
The announcement has received criticism for its timing and the lack of clarity on how AI will be practically implemented in game creation.
Netflix continues to invest in gaming as part of its broader strategy, despite the relatively low engagement of its current game offerings.