San Francisco: Netflix has expanded cloud gaming by opening a new studio in Southern California. The company's vice president of gaming, Mike Verdu, revealed two pieces of information concerning the streaming giant's entry into games, reports TechCrunch. According to Verdu, the platform is "seriously researching a cloud gaming offering". Netflix Shares Drop 23% After Losing 200K Subscribers in First Quarter.

"It is a value add. We are not asking you to subscribe as a console replacement. It is a completely different business model. The hope is over time that it just becomes this very natural way to play games wherever you are," he added.

The company is expanding its internal studio in California in order to speed up game development. Former 'Overwatch' executive producer, Chacko Sonny, will work as the studio's head in California. The 'Overwatch' was a huge hit at Blizzard Entertainment, earning billions of dollars.

"He could have done anything, but he chose to come here," Verdu was quoted as saying. "You do not get people like that coming to your organisation to build the next big thing in gaming unless there's a sense that we're really in it for the long haul and in it for the right reasons," he added. Netflix Losing Long-Term Paid Subscribers, 60% Cancellations by New Subscribers in Last Quarter, Says Report.

Since announcing its entry into the gaming market, Netflix has 35 games available and 14 more in development in its own studios, the report said. Verdu said that it currently has 55 games in progress. These games offer both licensed IP like 'Spongebob Squarepants' and experiences based on original IP like 'Stranger Things'. Additionally, the company is making its original games.

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