Microsoft’s Cloud Gaming (MSFT) Comes to Windows 10 and iOS PCs – June 30, 2021
Microsoft (MSFT – Free Report) extended Xbox Cloud Gaming to Apple‘s (AAPL – Free Report) iPhones and tablets as well as Windows 10 PCs via browsers (Microsoft Edge, Chrome or Safari) for Xbox Game Pass Ultimate subscribers. The service is currently available in 22 countries.
Microsoft’s Game Pass Ultimate is a subscription service that allows gamers to play over 100 video game titles for a monthly subscription of $ 14.99.
Additionally, the tech giant announced that its custom Xbox Series X hardware is powering the Xbox Cloud Gaming service. The company has been working on revamping its data centers with the latest Xbox hardware. This will deliver improved frame rates and load times, improving the overall video game experience, the company added.
Behind Microsoft’s Cloud Gaming Push
According to a report by Mordor Intelligence, The global cloud gaming market is expected to experience a CAGR of 45.2% between 2021 and 2026.
Cloud gaming, also known as ‘games on demand’, is seeing increasing use as it allows video games to be accessed on a variety of devices anywhere, anytime and eliminates the need for consoles / hardware. expensive game.
The increasing penetration of smartphones and the use of innovative technologies such as augmented / virtual reality for next-generation video games, as well as the accelerated deployment of 5G are the main catalysts in the market.
This bodes well for Microsoft, which is a dominant name in the video game space. The company has doubled the expansion of its video game business as the gaming industry booms.
According to a report available on Research And Markets, the global video game industry is expected to experience a CAGR of 9.24% between 2021 and 2026 to reach $ 287.1 billion.
The pandemic and subsequent lockdowns imposed around the world last year gave video game business a massive boost.
Microsoft’s focus on attracting more subscribers for its Game Pass service is expected to increase its stake in the video game space against the likes of Sony and Nintendo. Subscription services ensure a stable and recurring revenue stream. The company’s Game Pass service, rolled out in 2017, was a huge success with over 18 million subscribers.
At no additional cost, the combination of cloud gaming with the Xbox Game Pass Ultimate service is likely to be a game-changer for Microsoft and strengthen its competitive position in the cloud gaming space.
In addition, Microsoft recently declared that he was working on developing various streaming devices for his cloud gaming service that will allow gamers to access games on various devices like TV or monitor, eliminating the need for a console.
For its upcoming Windows 11 operating system, Microsoft has provided a built-in Xbox app that makes it easy to access the company’s Xbox Game Pass for PC and Xbox Game Pass Ultimate subscription services effortlessly.
The acquisition of the company, Bethesda Softworks parent company ZeniMax Media, is also expected to strengthen Microsoft’s position in video games.
In the last published quarter, Microsoft’s gaming revenue jumped 50% (up 48% on a cc) due to an increased wave-led commitment to stay at home. Additionally, Xbox content and services revenues jumped 34% year-on-year (up 32% at cc), supported by healthy growth in proprietary titles.
Nonetheless, Microsoft needs to be careful with the growing competition in the cloud gaming space from Amazon (AMZN – Free report) and Facebook.
Microsoft is currently carrying a Zacks Rank # 3 (Hold). You can see The full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
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