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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, as it looks to diversify revenue sources amid intensifying competition in the streaming space.

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.

The studio's games, which are available on Sony's PlayStation, Microsoft's Xbox, Nintendo Switch and PCs, will be the first non-mobile titles in the streaming giant's newly created video game portfolio.

"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.

"We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV," the company said in its shareholder letter.

"We think the time is right to learn more about how our members value games." For more, read the full Reuters report.

The games from the new studio would appear to be more inline with Apple's Arcade style of games. It's a Netflix marketing move that seems to be countering Apple's move into streaming with Apple TV+.