Microsoft is forming a Cloud for its Game Division

The Verge

The Verge

Today, the company unveiled a new cloud gaming division that is gearing up for a future where consoles are simply streaming boxes. An example is from the traditional Xbox to the Xbox 360. Azure, with locations in 42 regions worldwide, provides world-class server infrastructure, allowing creators to focus on building great games with best-available global reach. Nvidia threw its' hat in the ring with its GeForce Now game streaming service for PC gamers.

Through a press release, AMD announced its new relationship with the Xbox One family of consoles, which has become a reality thanks to the support they now have for monitors with FreeSync technology. The company has also been quietly acquiring gaming-related companies like Havok for some time now. According to Bloomberg, the new unit will be called gaming cloud.

Microsoft has launched a cloud gaming devision, which could signal the firm is setting up for a future without dedicated Xbox console hardware.

As reported by Verge, Microsoft had been building up its cloud gaming division for a few years and also acquired companies like PlayFab for this goal. The company has the basic structure of the cloud streaming offer that could look like Xbox Game Pass. Worryingly, this is happening to users who don't have an Xbox Game Pass, indicating that there's some sort of underlying problem affecting several users. It's a monthly subscription one can purchase through which they can download and play multiple games on the Xbox One.

Incorporating PlayFab's experience, growing network of game developers and powerful gaming-as-a-service platform into our product offering is an important step forward for gaming at Microsoft.

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So what Microsoft will create would be the "Netflix" for games.

What do you think of cloud gaming?

Cloud gaming has something of a rocky past, and we have plenty of examples of companies trying to make cloud gaming work but failing in the process. Even though the new division is going to start small, it'll definitely be interesting to see where it goes over the next few years.

In Germany, Microsoft's additional investments aim to help empower more organisations and businesses in Germany and across the globe to digitally transform with cloud services. For a large-scale service covering a lot of games, it would need to get other companies on board otherwise it won't work.

Besides the Middle-East, Microsoft also plans to open two cloud sites in Switzerland and two new locations in Germany. Whether or not Microsoft is able to pull it off remains to be seen.

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