Microsoft Corporation
MSFT
recently announced that it is
working
on extending cloud gaming service to
Apple
’s
AAPL
iOS devices as well as on Windows PC. The cloud gaming will be available as a part of Xbox Game Pass Ultimate subscription and is likely to be accessible on iOS devices and Windows PC from spring 2021.
Cloud gaming can be accessed on Windows PC through Xbox app and browser, while gamers can access cloud gaming through mobile web browser on iOS devices.
Microsoft also added that it will be rolling out cloud gaming service clubbed with Xbox Game Pass Ultimate, to several countries including Japan, Australia, Mexico and Brazil.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart
|
Microsoft Corporation Quote
Cloud Gaming Presents Abundant Prospects
Microsoft is
betting big on cloud gaming
, which is also known as “gaming on demand.” Cloud gaming is witnessing significant traction as it allows access to video games on any android device anywhere, anytime and eliminates the need for expensive gaming consoles.
The acceleration in video gaming activity worldwide, triggered by the COVID-19 crisis and ensuing shelter-in-place restrictions, is also driving demand for online gaming.
Proliferation of smartphones and adoption of innovative technologies like augmented/virtual reality (AR/VR) for next generation video games along with rapid 5G deployment will act as catalysts and further drive the cloud gaming market.
According to
Grand View Research report
, the cloud gaming market is expected to witness a CAGR of 47.9% between 2020 and 2027.
In September 2020, Microsoft rolled out its cloud gaming service bundled with Xbox Game Pass Ultimate subscription in 22 markets across North America and Europe.
The alluring revenue growth potential in the cloud gaming market has attracted other tech majors like
Alphabet
GOOGL
,
Amazon
AMZN
and Facebook, which has intensified competition in the space. In September 2020, Amazon launched its cloud gaming service — Luna — in the United States, while Google’s cloud game service Stadia is available to gamers since November 2019.
Updates Regarding Latest Consoles
Microsoft also provided updates regarding its latest consoles — Xbox Series X and Xbox Series S.
The company stated that 40% of the new gamers that joined Xbox ecosystem, joined through Xbox Series S. Microsoft’s Xbox Series S carries a relatively lower price tag of $299 compared with $499 for Xbox Series X. The lower price tag is expected to attract more casual and non-gamers who refrain from spending money on high-end consoles.
Microsoft also noted that it delivered 1.6 million upgrades to Xbox Series X and Series S through Smart Delivery.
The monthly engagement for Xbox Game Pass more than doubled in November, added Microsoft. The most popular titles that were widely played by gamers included
Destiny 2: Beyond Light, Tetris Effect Connected
, and
Star Wars: Jedi Fallen Order
.
Microsoft also added a list of new titles arriving on Xbox in 2021 that includes
Lego Star Wars: The Skywalker Saga, Tom Clancy’s Rainbow Six Quarantine, Ruined King: A League of Legends Story, Balan Wonderworld, The Artful Escape, Bright Memory Infinite, Echo Generation
and
Outriders
.
Further titles like
Halo Infinite, Psychonauts 2
, and
The Ascent
will be available on Xbox in 2021 as a part of Xbox Game Pass. The much anticipated
Halo Infinite
will be released in the fall of 2021, per an
update from 343 Industries
.
At present, Microsoft sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
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