Netflix Buys Virtual Avatar Maker to Power Its Gaming Push

Netflix is making another strategic move in gaming, announcing it has acquired Ready Player Me, a virtual avatar creation platform, as it continues reshaping its gaming ambitions. The news was first reported by TechCrunch, which noted the Estonia-based startup will help Netflix build persistent digital avatars that subscribers can carry across different games and experiences.

Ready Player Me is best known for its avatar-creation tools that allow users to design a single digital identity usable across multiple games and virtual worlds. Netflix says it plans to leverage the startup’s development tools and infrastructure to let users bring their personas — and fandom — with them as they move between Netflix games.

Financial terms of the deal were not disclosed. However, Ready Player Me had previously raised $72 million (about $99 million CAD) in venture funding from major backers, including a16z, Endeavor, Konvoy Ventures, and Plural, along with angel investors such as the co-founders of Roblox, Twitch, and King Games. Netflix’s acquisition of Ready Player Me also comes as its other headline-grabbing move — an $82.7 billion USD (about $114 billion CAD) bid for Warner Bros. — remains uncertain, with Paramount attempting to disrupt the deal through a massive $108 billion USD (about $149 billion CAD) hostile takeover.

As part of the acquisition, Ready Player Me’s team of roughly 20 employees will join Netflix, including founders Rainer Selvet, Haver Järveoja, Kaspar Tiri, and Timmu Tõke. The company hasn’t shared a timeline for when avatars will launch or which games will support them first. However, Ready Player Me confirmed its existing services will wind down on January 31, 2026, including its PlayerZero online avatar tool.

“Our vision has always been to enable avatars and identities to travel across many games and virtual worlds,” Timmu Tõke, CEO at Ready Player Me, said in a statement. “We’ve been on an independent path to make that vision a reality for a long time. I’m now very excited for the Ready Player Me team to join Netflix to scale our tech and expertise to a global audience and contribute to the exciting vision Netflix has for gaming.”

The acquisition underscores how Netflix’s gaming strategy has evolved since it entered the space four years ago. Initially focused on mobile games tied to Netflix accounts, the company acquired several studios and licensed major titles, with mixed results. Some high-profile games drew attention, but many struggled to gain traction, leading Netflix to shut down or unwind several studio efforts.

Under new games president Alain Tascan, formerly of Epic Games, Netflix has shifted toward games designed for the TV, including party games, kids’ titles, and narrative-driven experiences. Last month, Netflix launched a broader catalogue of games on TVs worldwide, signalling a new era for Netflix Games. Recent releases include party-focused titles and mainstream games, while a FIFA game is also slated to arrive ahead of the 2026 World Cup.

Persistent avatars could play a key role in tying these experiences together, especially as Netflix experiments with more interactive formats across TV and mobile. Whether this helps Netflix redefine itself beyond passive streaming remains to be seen, but the Ready Player Me acquisition suggests the company is serious about building a more connected gaming ecosystem.