Game Consoles Pioneered Streaming Tech, Now Outpaced by Smart TVs
Game Consoles Built Streaming, Now Outgrown by Smart TVs

The Rise and Fall of Game Consoles as Streaming Hubs

For gamers who also enjoy binge-watching their favorite TV shows through their consoles, recent announcements have delivered a double blow. Netflix has begun notifying PlayStation 3 owners that it will discontinue support for its PS3 app after March 2nd, while Hulu is pulling the plug on its app for Nintendo's original Switch. These moves signal a significant shift in the streaming landscape, where game consoles once led the charge but are now being left behind by more modern technology.

Netflix's PS3: From Streaming Pioneer to Legacy Device

Netflix's decision to end PS3 app support is particularly noteworthy because the console was instrumental in the company's early living room expansion. In late 2009, Netflix launched its PS3 app with an unconventional approach: instead of a downloadable app, it initially distributed physical discs to members. The app later became available through the PlayStation Store and quickly gained popularity.

By 2012, the PS3 had become Netflix's largest TV-connected platform, sometimes even surpassing PC usage in viewing hours. "PS3 is our largest TV-connected platform in terms of Netflix viewing, and this year, at times, even surpassed the PC in hours of Netflix enjoyment to become our number one platform overall," said then-CEO Reed Hastings at the time.

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The console wasn't just popular with viewers—it became crucial to Netflix's development strategy. Unlike other platforms where Netflix had to release complete app updates for every change, the PS3 app used HTML5 technology. This allowed Netflix to test new features and designs with specific user groups without full updates, making the PS3 a cornerstone of their A/B testing approach.

As a result, PS3 users often got Netflix features before they appeared on other streaming devices. For example, casting support debuted on PS3 nearly a year before Google launched Chromecast.

The Broader Console Streaming Legacy

Netflix isn't the only streaming service that owes a debt to game consoles. In 2002, enthusiasts created the Xbox Media Player for Microsoft's original Xbox, which evolved into XBMC (Xbox Media Center) and later became Kodi—a cross-platform media player. This project also laid the foundation for Plex, which has grown from a media center into a full streaming service with ad-supported content.

The Shift to Smart TVs

As streaming technology matured and smart TVs became more prevalent, console streaming has steadily declined. According to Parks Associates data, in early 2018, 21% of U.S. households used a game console as their primary streaming device. By the end of 2025, that number had dropped to just 7%.

During the same period, households using smart TVs for streaming increased from 39% to 61%, while streaming dongle usage remained relatively stable. This dramatic shift explains why streaming services are reducing support for older consoles.

As streaming services evolve with new features like cloud-streamed games and interactive livestreams, maintaining support for older, less capable hardware becomes less practical. Netflix's recent decision to disable casting support across most devices last month further illustrates this trend toward modernizing their platform.

The Future of Streaming Technology

The decline of console streaming represents a natural evolution in technology. Game consoles helped pioneer the streaming revolution, providing early platforms for services to develop and test features. However, as smart TVs offer more integrated, capable, and user-friendly streaming experiences, the need for console-based apps has diminished.

This transition highlights how quickly technology can outgrow its original platforms, even those that were once at the forefront of innovation. For streaming services, focusing resources on modern devices ensures they can continue developing advanced features that meet evolving consumer expectations.

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