Microsoft and Amazon shift cloud gaming strategies
Microsoft is testing an ad-supported model for streaming owned games, while Amazon is integrating its Luna service into Prime Video, aiming to expand their reach in the cloud gaming market.
Microsoft and Amazon are adjusting their cloud gaming strategies to target different segments of the market. Microsoft's Xbox division announced Thursday that it will test an advertising-supported system allowing users to stream games they already own. This move is intended to lower the cost of access to games.
In parallel, Amazon is incorporating its Luna cloud gaming service into its Prime Video streaming platform. Previously accessed via a dedicated website, Luna will now be more prominently featured as part of the Prime subscription package, which costs $14.99 per month.
Both tech giants have faced challenges in making cloud gaming widely adopted, primarily due to network latency issues that can degrade the user experience. Xbox stated its goal is to provide more affordable ways for more people to play.
The shifts come as Xbox, under CEO Asha Sharma, seeks growth after a significant investment in Activision Blizzard. Sharma has overseen leadership changes and strategic adjustments, including a forthcoming console and recent subscription price cuts.
Past attempts to integrate advertising into games by other publishers have met with player criticism. Xbox acknowledges this, stating that "When done well, advertising can help lower the cost of access."