Just five months after Netflix Games announced its commitment to integrating generative AI into game development, the initiative has hit a major setback with the departure of Mike Verdu, the executive spearheading the effort. As confirmed by Stephen Totilo’s Game File, Verdu’s exit raises questions about whether Netflix’s push for AI-driven gaming was premature.
When Verdu was promoted to vice president overseeing AI-powered game development, his enthusiasm for the technology was evident. In a LinkedIn post, he compared the rise of generative AI to the transformative gaming innovations of the 1990s, expressing excitement over its potential to redefine the industry.
However, while his vision was optimistic, it lacked concrete details about how AI would meaningfully enhance game development. The challenges of implementing AI—especially amidst industry-wide layoffs—may have slowed progress, contributing to his abrupt departure. With Verdu gone, the future of Netflix’s AI-driven gaming strategy remains uncertain.
What’s Next for Netflix Games?
Netflix has yet to announce a successor to Verdu, suggesting that generative AI might no longer be a top priority for the company’s gaming division. Instead, Netflix’s gaming success has largely come from licensing popular titles. The Grand Theft Auto series, developed by Rockstar Games, has been a major driver of downloads on the Netflix app. Additionally, Squid Game: Unleashed has performed well, ranking in the top ten most downloaded action games across 107 countries.
Despite these successes, Netflix acknowledged that gaming has had a “relatively small” impact on subscriber retention. This leaves the company at a crossroads: should it continue investing in original game development or focus on licensing third-party titles for a lower financial risk? While generative AI could still play a role in reducing development costs, the departure of its key advocate suggests that Netflix may not be ready for a full AI-driven pivot just yet.
As the company re-evaluates its gaming approach, it faces a choice between doubling down on in-house development or shifting toward third-party partnerships. If Netflix does move forward with AI-powered game creation, the process will likely require significant investment and a longer timeline—one that Verdu may not have had the resources or time to fully develop.
For now, Netflix’s gaming division remains in flux, with generative AI’s role in its future more uncertain than ever.
