First, Netflix' games have the same issue as Apple Arcade: the majority are ad-riddled trash. And Apple Arcade has App Store tie-in.
Second, the global numbers are likely to keep Netflix afloat (the same way they seem to for Facebook), but stateside numbers are abysmal compared to emerging services [0]: Netflix boasts 74.02 million subscribers in U.S. and Canada, and HBO Max has 45.2 million domestic (give or take 5 million). Within a year of launch, HBO Max has captured 2/3 the subscription size of Netflix! (Globally, it is barely doing double the numbers of Disney+.) The other competition has proven itself viable in a fraction of the time, and are using their built-in infrastructure to continue to compete. Netflix no longer has any differentiating factor, except that their US adult-targeted content is usually lower quality.
0. https://www.cnbc.com/2021/11/10/disney-netflix-and-other-str...