Netflix has bought video game creator Night School Studio and rolled out five mobile gaming titles in select European markets, the company said on Tuesday.
The news comes as the streaming giant has been looking to diversify revenue sources amid intensifying competition in the streaming space.
Night School confirmed the purchase separately on its own site, saying it's "a surreal honor to be the first games studio to join Netflix."
The terms of the acquisition weren't disclosed.
Founded by Sean Krankel and Adam Hines in 2014, Night School Studio is known for its debut title, the supernatural mystery adventure Oxenfree. Netflix plans to make games a part of its subscription, with no ads or in-app purchases.
Night School Studio, the company's first gaming studio purchase, is best known for its debut game, "Oxenfree", a supernatural teen thriller with an eerie soundtrack.
"Like our shows and films, these games will all be included as part of your Netflix membership — all with no ads and no in-app purchases," the company said.
Netflix had mentioned its plans to enter gaming during its last quarterly earnings, as newer players including Disney+ and HBO Max have been rapidly gaining subscribers, intensifying competition in the streaming landscape.
The company earlier in the day said it had introduced "Stranger Things: 1984", "Stranger Things 3: The Game", "Card Blast", "Teeter Up" and "Shooting Hoops" titles on Android to Netflix members in Spain and Italy.