Beyond Streaming, Netflix Launches TV-Screen Games for First Time, Turning Phones Into Controllers

TradingKey - Four years after launching its gaming initiative, Netflix, the global streaming entertainment leader, is rolling out video games to television screens for the first time — marking a pivotal step in its broader growth strategy.

On Wednesday, October 8, co-CEO Greg Peters announced that Netflix is expanding its gaming service beyond films and TV shows, breaking the previous requirement that users could only play Netflix games on mobile devices.

The new big-screen gaming experience allows subscribers to use their smartphones as controllers, while gameplay is displayed on the TV. Users need either a smart TV or a streaming device like Roku, and can instantly connect by scanning a QR code with their phone — turning it into a wireless gamepad.

The initial lineup includes multiplayer-friendly titles:

• Boggle Party
• Pictionary: Game Night
• Tetris Time Warp
• Lego Party

All games are available free of charge to Netflix subscribers.

Why Gaming? A Strategic Move Beyond Streaming

Gaming is a highly profitable industry, yet most Hollywood studios and media companies have struggled to succeed in the space. Mobile gaming, in particular, is a mature and fiercely competitive ecosystem.

Now, under Peters’ leadership, Netflix is pushing hard to make gaming a core part of its future. Alain Tascan, Netflix’s Head of Games and former executive vice president  at Epic Games, said many entertainment companies have taken a short-term approach to gaming.

Tascan emphasized:

“To entertain the world, we must include games. A lot of companies have a lot of users, but not that many have all these people on the main entertainment screen at home, the TV.”

Strong Profits, But Valuation Questions Remain

In Q2 2025, boosted by a weaker U.S. dollar, price hikes for its streaming plans, and strong ad-tier revenue, Netflix posted accelerating revenue and earnings growth, achieving its highest quarterly profit ever.

However, some analysts remain skeptical about whether Netflix’s growth trajectory can justify its forward P/E ratio of over 50x. Key challenges include:

• The ongoing shift to an ad-supported model
• Rising competition from YouTube, which continues to capture viewer attention

Stock Performance and Outlook

Year-to-date, Netflix shares are up over 36%, outperforming the S&P 500’s ~15% gain. According to TradingKey’s stock score tool, the Wall Street consensus target price is $1,355, implying about 14% upside from current levels. Among 50 analysts covering the stock, none rate it as “Sell.”

Analysts project that after three consecutive quarters of strong EPS growth — from $4.37 (Q4 2024) to $6.76 (Q1 2025) and $7.35 (Q2 2025) — Netflix’s earnings may decline sequentially:

• Q3 2025 EPS forecast: $6.67
• Q4 2025 EPS forecast: $5.44

This expected pullback reflects seasonal ad spending trends and higher content investment, but investors will be watching closely whether the new gaming push can open a fresh revenue stream and extend long-term growth.