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