Back to top

Image: Bigstock

Microsoft's (MSFT) Cloud Gaming Launched in Four Countries

Read MoreHide Full Article

At the Tokyo Game Show 2021, Microsoft (MSFT - Free Report) announced that it launched its Xbox cloud gaming service in Australia, Brazil, Japan and Mexico bundled with Xbox Game Pass Ultimate subscription. With the launch in these four countries, the company’s cloud gaming will be available in 26 countries across the globe.

In September 2020, Microsoft rolled out its cloud gaming service for Xbox users across 22 markets in North America and Europe, simultaneously, as part of the Xbox Game Pass Ultimate subscription.

Gamers will be able to access more than 100 game titles (cloud-enabled and localized) as part of their Xbox Game Pass Ultimate subscription on a wide variety of devices like Windows PCs, Android phones and tablets. The service will also be available on Apple’s (AAPL - Free Report) iPhones and tablets.

Gamers in these four countries will also have access to highly-awaited Game Pass video games like Halo Infinite, Forza Horizon 5, and Back 4 Blood via cloud gaming service. The tech giant’s cloud gaming service is powered by its custom Xbox Series X consoles. Gamers can enjoy enhanced gaming experience owing to faster load times and enhanced frame rates, added Microsoft.

 

Microsoft’s competitive position in the cloud gaming space is likely to get a boost from bundling cloud gaming with Xbox Game Pass Ultimate service (at no additional cost). Subscription services ensure a stable and recurring revenue stream. The company’s Game Pass subscription service launched in 2017 has been a massive success with more than 18 million users.

Prospering Cloud Gaming Market Favors Prospects

Microsoft is one of  the major players in the videogame space along with the likes of Sony and Nintendo. The company is striving to expand its video game business as the gaming industry witnesses a boom. Cloud gaming is driving the overall video game market.

Cloud gaming has been enjoying increasing popularity as it offers easy access to video games on various devices anywhere, anytime and eliminates the need for high-priced gaming consoles/hardware.

According to a Mordor Intelligence report, worldwide cloud gaming market is forecast to witness a CAGR of 45.2% between 2021 and 2026,

Higher penetration of smartphones along with accelerated 5G deployment and utilization of pioneering technologies like augmented/virtual reality for next-generation video are the key catalysts propelling the market.

In August 2021, at the Gamescom 2021 Xbox Stream event, Microsoft announced that it will extend its cloud gaming to Xbox Series X and Series S along with Xbox One consoles around the upcoming holiday season. 

In June 2021, Microsoft extended Xbox Cloud Gaming to Apple’s iPhones and tablets as well as Windows 10 PCs through browsers (Microsoft Edge, Chrome or Safari) for Xbox Game Pass Ultimate subscribers. The service is available in 22 countries.

The potential in the cloud gaming market has attracted other tech majors like Alphabet, Amazon (AMZN - Free Report) and Facebook, thereby increasing competition.

At present, Microsoft, carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Apple Inc. (AAPL) - free report >>

Microsoft Corporation (MSFT) - free report >>

Published in