To offer a more pessimistic case this was true for Google, whose Stadia product flopped, and it was true for Amazon, whose video games utterly failed to take off. Currently something like Microsoft gamepass is a far better choice if you want to subscribe and play videogames.
On another note, Netflix has experimented with videogames before using Telltale "choose your own adventure" style games and fitting them into their existing product. They also did a similar thing with Bandersnatch a choose your own adventure from the film side. So I think with the demise of telltale netflix might just be bringing that in house rather than trying to offer a wholesale alternative to existing videogame providers.
On another note, Netflix has experimented with videogames before using Telltale "choose your own adventure" style games and fitting them into their existing product. They also did a similar thing with Bandersnatch a choose your own adventure from the film side. So I think with the demise of telltale netflix might just be bringing that in house rather than trying to offer a wholesale alternative to existing videogame providers.