Netflix Embraces AI-Generated Gaming After Axing Triple-A Studio

Netflix Embraces AI-Generated Gaming After Axing Triple-A Studio

Netflix has appointed a vice president of generative artificial intelligence for games to tap into the “once-in-a-generation” opportunities offered by AI. The move makes Netflix the latest studio to embrace the controversial technology, despite ongoing uncertainty about the streaming giant’s future in the gaming industry after it quietly shuttered its triple-A gaming studio before releasing a game.

Mike Verdu announced his new role as vice president, “genAI for Games,” in a LinkedIn post Monday. Verdu joined Netflix from Facebook in 2021 and previously served as the head of Netflix Games. He stepped down as games chief in July for an unspecified role as soon as a replacement could be found, saying only that he would be leading a team working at “the cutting edge of game innovation.”

While “very proud” of the role he played in building Netflix Games “from the ground up,” Verdu said he “knew the time had come to had off” once the business had scaled. “I readily acknowledge that my strength is 0-1, or 0-1,000 in terms of employees,” he said. He was replaced by former Epic Games executive Alain Tascan.

Supporting, not supplanting, creative work

It’s not clear precisely what Netflix’s plans with generative AI are, but the company has been working hard to develop its capacity in the field, including advertising for a nearly $1 million a year AI product manager while creatives were striking last year. Verdu was keen to stress AI would support, not supplant, creative workers, boasting the technology’s ability to “accelerate the velocity of development and unlock truly novel game experiences that will surprise, delight, and inspire players.” 

The adoption of generative AI is the source of significant disquiet within the games industry. Copyright concerns over how AI models are trained have hampered widespread uptake and spawned numerous lawsuits between model makers and content owners. 

In a sector plagued by high-profile closures and job losses, many also fear how the technology could be used to replace human creativity and lead to further layoffs. The issue is a key motivating factor behind an ongoing strike among US voice actors linked to the SAG-Aftra union. Workers have been refusing to work with companies including Disney, Warner Bros, EA and Activision since July over the issue and have generated expressions of solidarity from other actors around the world.

Verdu said he is determined AI will support creatives and their work, not replace them. “I am focused on a creator-first vision for AI, one that puts creative talent at the center, with AI being a catalyst and an accelerant,” he said. 

“AI will enable big game teams to move much faster, and will also put an almost unimaginable collection of new capabilities in the hands of developers in smaller game teams.”

“Many view this technology with fear, but I am a game-maker at heart and I see its potential to unlock all of us, to create mind-blowing new experiences for players, to lift us to new heights. Yes, we’ll have to adapt and change, but when have we failed to meet that challenge as an industry?”

‘Uninformed speculation’

Verdu also used his LinkedIn post to hit back at recent media reports questioning the future of Netflix Games after the streaming giant lost a series of high-profile hires and shuttered one of its only internal game studios, Team Blue, before it had released a title. 

“I couldn’t be more thrilled to lead this new initiative! Pay no mind to the uninformed speculation in the media about the changes in Netflix Games,” Verdu said. “What you’ve seen over the last several months was actually a planned transition.”

“I am completely delighted to be back out on the frontier, trying to put a dent in the universe.”

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