Skip to main content

Xbox Stakes its Future on Cloud Gaming

Microsoft bets on streaming tech to win the next-gen console war.

  • Entertainment & Travel
  • Business Law & Economics
  • Product Development
  • Product Distribution
  • Retail, Marketing and Advertising
  • Supply & Demand
  • Chapter 1 Taking Risks & Making Profits
  • Chapter 2 Economics
  • Chapter 3 Globalization
  • Chapter 13 Marketing
  • Chapter 14 Product & Price
  • Chapter 15 Distribution
  • Chapter 16 Place & Promotion
  • Bonus Chapter B
  • Blog
  • Video
  • Understanding Business
  • Higher Education

For decades, the video game console market has been dominated by two major players: Microsoft’s Xbox and Sony’s Playstation. While the latter has consistently outsold the former, in recent years Microsoft has been buying up game developers in an effort to control the software side of the business. The video below explores Microsoft’s bet on cloud gaming through Xbox Game Pass, and whether the tech giant’s gamble will pay off in the long run.

Questions:

  1. Why do companies like Microsoft and Sony often sell their video game consoles at a loss? 
  2. Do you think Microsoft’s commitment to cloud gaming will be a success in the long term? Why or why not?
Author: NickelsMcHughMcHugh