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Microsoft Buys Live-Streaming Tech Company, Looking To Make Xbox Games More Interactive

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Microsoft Corp. (MSFT - Free Report) announced Thursday that it has bought a small startup in an effort to help Xbox customers have an easier time playing video games with each other. Terms of the deal however were not disclosed.

The small startup, Beam Interactive, specializes in live-streaming technology for gamers. The company built a software development kit for coders to use to modify existing computer games, like the title Minecraft, so that players can livestream their gaming sessions to friends.  The software also provides friends who could watch the session with the ability to manipulate the gaming environment in real time. Beam Interactive debuted a beta version of its software in May, meaning the software was still in process of being developed and tested, but was still available to the general public.

Microsoft said in a blog post that it plans to integrate Beam’s technology into its own Xbox gaming technology. “We at Xbox are excited about this convergence between playing and watching, and want to provide gamers with the freedom and choice to have great multiplayer experiences across all of Beam’s platforms,” wrote Chad Gibson, Microsoft’s partner group program manager of its Xbox Live business in the blog post.

Beam Interactive CEO and co-founder Matt Salsamendi wrote in a separate post, “As Beam becomes part of Team Xbox, you’ll see awesome new features, epic new interactive game integrations, and a huge influx of new community members!”

Once Beam Interactive is fully absorbed into Microsoft, it will be interesting to see whether Microsoft will only allow gamers to use Beam’s technology to modify Microsoft-sanctioned titles or if Microsoft decides to tweak the technology in some way to cut off some of its existing features.

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