Microsoft Xbox Series S (L) and Xbox Series X consoles.
Phil Barker | Future publications Future through Getty Images
Microsoft will bring its cloud gaming service to Xbox consoles later this year.
The company announced Tuesday that Xbox Cloud Gaming, which allows players to stream games instead of having to install them on a device, would arrive on its new Xbox Series X and Xbox Series S consoles, as well as on older Xbox One machines this holiday season.
American tech giants like Microsoft, Google and Amazon are betting on a future of video games beyond consoles, where subscription services and software will play a much bigger role.
While Microsoft continues to invest heavily in Xbox hardware, it also puts a big focus on Xbox Game Pass, a subscription service that allows players to access a library of more than 100 titles for about $ 15 a month.
Cloud gaming, where games are hosted on remote servers and transmitted to users over the Internet, is an important part of Microsoft’s strategy. The goal is to attract players to the Microsoft ecosystem through multiple devices.
Currently, Xbox Cloud Gaming is only available on mobile devices and computers. Now, Microsoft plans to bring it to consoles. It also has a plan to launch cloud games on TVs through collaborations with manufacturers and their own dedicated transmission dongles.
Microsoft unveiled the launch window for cloud games on consoles at the Gamescom video game fair. The event normally takes place in Cologne, Germany, but has only been published online this year due to the coronavirus pandemic.
Japanese rival Sony is also betting on services through its PlayStation Plus subscription, which allows players to access online multiplayer and select free games every month.
But the company mainly promotes its exclusive box office games to try to attract consumers. Successful franchises like The Last of Us and God of War, for example, can only be found on PlayStation platforms.
However, Microsoft has been spending more aggressively on exclusive content lately. The company last year acquired Bethesda, the flagship video game publisher of franchises such as The Elder Scrolls and Fallout, for $ 7.5 billion.
Video games had a boom in 2020, as people engaged in home entertainment during the Covid closures. It is now a $ 180 billion industry, according to market researchers IDC. As several countries lose their pandemic restrictions, it remains to be seen whether the momentum can continue.