Analysts say the streaming giant's gaming efforts have yet to emerge as a major growth driver.
One of the main challenges, analysts believe, is Netflix's relatively limited portfolio of iconic intellectual property compared with rivals such as Warner Bros Discovery, which owns franchises including DC Comics.
Some of the most popular games from Netflix include Rockstar Games' GTA: San Andreas and those based on its own hit shows such as Squid Game: Unleashed.
The streaming giant said the new features aim to be a "curated space where parents know kids are entertained, engaged and enriched".
The move is also aimed at deepening engagement with families, a segment where children's content has traditionally been seen as helping reduce churn because parents are less likely to cancel.
"Emphasising kids programs will make Netflix stickier for households with children," Emarketer senior analyst Ross Benes said.
The new app will help Netflix "compete in the one area where it has a deficiency compared to Disney+, which is children's programming," he added.
The new app is designed for children eight years old and younger and is included in all levels of Netflix membership.
Each game will be playable offline, including Playtime With Peppa Pig, Dr Seuss's Horton! and Sesame Street.
In addition to parental controls, the platform ensures no ads, in-app purchases or extra fees.
Netflix Playground is available for download in the United States, Canada, the United Kingdom, Australia, the Philippines and New Zealand.
The company will launch globally towards the end of this month.
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