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Microsoft (MSFT) Reveals Dedicated Xbox Game Streaming Device
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Microsoft’s (MSFT - Free Report) Xbox CEO Phil Spencer has revealed a dedicated Xbox game streaming device on Twitter. In Spencer's tweet, the device can be seen on the top of his shelf in the Microsoft office space.
It is a compact white box that resembles the Xbox Series S and is used to play Xbox games using the company's Xbox Cloud Gaming service. Microsoft is yet to officially announce the streaming hardware, which would allow Game Pass subscribers to access their library wherever they roam, provided the title is available within Xbox in the Cloud.
This device, codenamed Keystone, is part of the company’s Xbox Everywhere initiative and will allow users to connect the device to a TV to stream games instead of buying a new Xbox console. The Xbox game streaming device will also let users access Netflix and other media apps. The company also has an Xbox TV app for 2022 Samsung TVs and monitors. The Xbox TV app allows users to stream games at 1080p.
Microsoft wants to liberate console gamers from needing a full-on console in order to enjoy the best of Xbox. Game Pass subscribers can access their library via cloud on mobile devices, laptops and TVs.
Microsoft has been working on making it easier to launch and play games on Xbox overall. Last month, the company rolled out an Xbox Series X update that allows users to play many more Xbox One games offline without a mandatory digital rights management check. The 2208 update does not force users to do an online compatibility check to play a game from an Xbox One disc.
Users will now be able to install the Xbox One version of a game straight from the Xbox One or cross-generation disc and can start playing it. Internet will be required to download any updates or enhancement packs for the Series X.
It also began testing badges on the console’s home screen that make it clear at a glance whether a game is currently playable.
For first-quarter fiscal 2023, Microsoft expects gaming revenues to decline in low to mid-single digits due to declines in first-party gaming content on Xbox consoles.
As for games that might be coming to Xbox Game Pass, ads for titles such as Elden Ring, Soul Hackers, and GTA V have been spotted on the Xbox storefront. All these titles also appear to have been recently made xCloud compatible.
In the three months that ended in June, Microsoft, Sony (SONY - Free Report) and Nintendo (NTDOY - Free Report) each posted disappointing results in their respective gaming businesses. In the last reported quarter, Microsoft’s gaming revenues declined 7% (down 5% at cc) due to a decrease in Xbox content and services and Xbox hardware.
Nintendo sold 3.43 million units of its portable Switch console in the quarter, down 23% year over year, while software sales declined 8.6% to 41.4 million units. Sony sold 2.4 million PlayStation 5 consoles in the quarter, slightly higher than 2.3 million units sold in the same period a year ago.
Microsoft Gives Insight Into Xbox Game Pass Revenues
Microsoft is currently trying to get its massive Activision Blizzard merger through regulatory bodies around the globe. Activision recently launched Overwatch 2, the sequel to Blizzard Entertainment's popular team-based shooter game.
Certain data points that Microsoft typically doesn't share with its shareholders publicly are making their way into the public domain as a result of the legal arguments.
According to Brazil's regulatory body CADE, Xbox Game Pass' revenues from subscriptions were $2.9 billion in fiscal 2021. Based on data publicly available by Microsoft, Xbox gaming generated a total of $16.28 billion in calendar year 2021.
Per Tweaktown report, Xbox Game Pass made up roughly 18% of Microsoft's total yearly Xbox revenues ($16.28 billion) and nearly 30% of its games and services revenues ($12.581 billion) for the period.
Microsoft’s strategy of not distributing Activision Blizzard games on rival consoles would only be profitable for it if the games attract a high number of players to the Xbox ecosystem, resulting in revenues to compensate for losses from not selling these titles on rival consoles. Microsoft has a Zacks Rank #4 (Sell).
Image: Bigstock
Microsoft (MSFT) Reveals Dedicated Xbox Game Streaming Device
Microsoft’s (MSFT - Free Report) Xbox CEO Phil Spencer has revealed a dedicated Xbox game streaming device on Twitter. In Spencer's tweet, the device can be seen on the top of his shelf in the Microsoft office space.
It is a compact white box that resembles the Xbox Series S and is used to play Xbox games using the company's Xbox Cloud Gaming service. Microsoft is yet to officially announce the streaming hardware, which would allow Game Pass subscribers to access their library wherever they roam, provided the title is available within Xbox in the Cloud.
This device, codenamed Keystone, is part of the company’s Xbox Everywhere initiative and will allow users to connect the device to a TV to stream games instead of buying a new Xbox console. The Xbox game streaming device will also let users access Netflix and other media apps. The company also has an Xbox TV app for 2022 Samsung TVs and monitors. The Xbox TV app allows users to stream games at 1080p.
Microsoft wants to liberate console gamers from needing a full-on console in order to enjoy the best of Xbox. Game Pass subscribers can access their library via cloud on mobile devices, laptops and TVs.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
Microsoft’s Xbox Push to Boost User Growth
Microsoft has been working on making it easier to launch and play games on Xbox overall. Last month, the company rolled out an Xbox Series X update that allows users to play many more Xbox One games offline without a mandatory digital rights management check. The 2208 update does not force users to do an online compatibility check to play a game from an Xbox One disc.
Users will now be able to install the Xbox One version of a game straight from the Xbox One or cross-generation disc and can start playing it. Internet will be required to download any updates or enhancement packs for the Series X.
It also began testing badges on the console’s home screen that make it clear at a glance whether a game is currently playable.
For first-quarter fiscal 2023, Microsoft expects gaming revenues to decline in low to mid-single digits due to declines in first-party gaming content on Xbox consoles.
As for games that might be coming to Xbox Game Pass, ads for titles such as Elden Ring, Soul Hackers, and GTA V have been spotted on the Xbox storefront. All these titles also appear to have been recently made xCloud compatible.
In the three months that ended in June, Microsoft, Sony (SONY - Free Report) and Nintendo (NTDOY - Free Report) each posted disappointing results in their respective gaming businesses. In the last reported quarter, Microsoft’s gaming revenues declined 7% (down 5% at cc) due to a decrease in Xbox content and services and Xbox hardware.
Nintendo sold 3.43 million units of its portable Switch console in the quarter, down 23% year over year, while software sales declined 8.6% to 41.4 million units. Sony sold 2.4 million PlayStation 5 consoles in the quarter, slightly higher than 2.3 million units sold in the same period a year ago.
Microsoft Gives Insight Into Xbox Game Pass Revenues
Microsoft is currently trying to get its massive Activision Blizzard merger through regulatory bodies around the globe. Activision recently launched Overwatch 2, the sequel to Blizzard Entertainment's popular team-based shooter game.
Certain data points that Microsoft typically doesn't share with its shareholders publicly are making their way into the public domain as a result of the legal arguments.
According to Brazil's regulatory body CADE, Xbox Game Pass' revenues from subscriptions were $2.9 billion in fiscal 2021. Based on data publicly available by Microsoft, Xbox gaming generated a total of $16.28 billion in calendar year 2021.
Per Tweaktown report, Xbox Game Pass made up roughly 18% of Microsoft's total yearly Xbox revenues ($16.28 billion) and nearly 30% of its games and services revenues ($12.581 billion) for the period.
Microsoft’s strategy of not distributing Activision Blizzard games on rival consoles would only be profitable for it if the games attract a high number of players to the Xbox ecosystem, resulting in revenues to compensate for losses from not selling these titles on rival consoles. Microsoft has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.