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What Happened: Xbox was also building its own console-free streaming devices for cloud gaming on any TV or monitor as a Netflix Inc (NASDAQ: NFLX) for gamers.
Microsoft is betting on a subscription-based model for video games, CNBC reports.
Microsoft’s Game Pass, which is available for a monthly subscription of $9.99, can be played on Xbox consoles, Android devices, and PCs is aimed to compete with Sony Group Corp’s (NYSE: SONY) PlayStation platform.
Microsoft plans to add cloud gaming to its new Xbox Series X console to compete with Sony’s PlayStation 5. It will also upgrade the servers that power its cloud gaming service from its old Xbox One hardware to the Xbox Series X.
Why It Matters: CEO Satya Nadella estimated the subscription value to exceed from the console to the PC to mobile following Game Pass’s browser availability. The company aimed to continue investing in Game Pass to add more content and bring the service to more geographies.
Cloud gaming through Xbox Game Pass Ultimate will be launched in Australia, Brazil, Mexico, and Japan later in 2021.
Xbox is exploring new subscription offerings for Game Pass. It is also working with telecom companies to sell a console and Game Pass for a low monthly price instead of an upfront payment.
Xbox plans to launch at least one new, first-party game into Game Pass every quarter, as over 23 global studios are creating games for the platform.
Microsoft has stepped up its investments in gaming, acquiring the studio Bethesda for $7.5 billion.
Price action: MSFT shares traded higher by 1.30% at $258.88 on the last check Thursday.
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