At the Tokyo Game Show 2021,
Microsoft
MSFT
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
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 Corporation Price and Consensus
Microsoft Corporation price-consensus-chart
|
Microsoft Corporation Quote
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
SNE
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
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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report