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Using the power of cloud computing in a $150 billion industry, Microsoft has unveiled a Netflix-styled Cloud Games to be launched on September 15.
With cloud services responsible for driving Microsoft Corporation (NASDAQ: MSFT) fourth-quarter earnings, the tech giant is harnessing its cloud capabilities to launch Netflix-styled subscription games. The cloud gaming service will be integrated with the Xbox Game Pass app from Sept. 15. At launch, subscribers would be able to choose from at least a hundred games including Halo 5, Grounded, Destiny 2 and Gears of War 5
With the Netflix-styled Microsoft Cloud gaming service, users will be able to play the games on their Android smartphones for $15 a month while the world awaits the release of the Desktop Windows 10 version. Despite the two positive news bordering on the release of this gaming service and the proposed TikTok acquisition discussions, the shares of Netflix are not the delight of investors at the moment. The stock closed on August 4 at $213.29 with a 1.5% bearish plunge. Performance after hours was kept at 0.14% at the time of writing.
About Microsoft Cloud Computing and Games
Established by Paul Allen and Bill Gates in 1975, Microsoft dived into the world of cloud computing in 2008 when it launched its Azure services platform. With the cloud services, Microsoft (MSFT) provides Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) which supports many programming languages and softwares, part of which Microsoft has used in the development of its video games.
Using Kinect, a motion-sensing input device made by Microsoft and designed as a video game controller, Microsoft forayed fully into the game development niche with the release of the Xbox One in 2013. There is a great correlation between the MSFT Cloud Games and the advancement in Azure cloud services. And in recent times, there has been a significant rise in the partnership between MSFT and tech firms adopting Microsoft Azure cloud solutions. The recent partnership with OpenAI will help the two tech giants build an AI-powered Supercomputer in Azure.
With the huge Xbox price which not everyone could afford, Microsoft developed the app version of its Xbox games to promote easier and wider accessibility. The technology is often modeled in a fashion similar to “Netflix style offering for movies,” as it lets people stream games over the internet on their phone, tablet, or PC while the games themselves are run on remote servers.
Creating Value in a $150 Billion Industry
The cloud computing gaming industry is valued at about $150 billion and with many competing tech companies (including Google LLC (NASDAQ: GOOGL) who launched its cloud game streaming platform called Stadia last year) coming with great innovations, offering great value is but the least a firm could do to get a reasonable market share.
With the proposed, Netflix-styled subscription service, the Microsoft Cloud Games will be played with a dedicated range of dedicated controllers and accessories. Made possible with partnerships from key game hardware manufacturers, the cloud gaming service will be available in the United States, United Kingdom, South Korea, Canada, and about 18 other nations.
The demand for video games surged during the coronavirus induced lockdown spurring gaming companies to launch products to beat the competition. With the growing advancement in cloud computing innovations, cloud gaming options will become commonplace around the world in the nearest future.