Microsoft Corporation (MSFT) Is Preparing For The Next Chapter In Gaming

Microsoft Corporation (NASDAQ:MSFT) has its eyes on the future of gaming, and the company is taking the steps to insure it will be a part of it. The company is slated to unveil a new cloud gaming division that will help it prepare for anticipated changes to the space.

The Verge has the scoop on Microsoft’s plans.

Microsoft has been building up to this move for a while. The company has been mysteriously acquiring gaming-related companies over the past few years. From Havok in 2015, Simplygon in 2017, to PlayFab earlier this year, you’ve probably never heard of any of them, but they’re important for Microsoft’s bold cloud gaming ambitions. While these acquisitions have been taking place, Microsoft has been reshuffling its gaming teams as the company prepares to launch its own cloud gaming services. Phil Spencer is now Microsoft’s head of gaming, and reports directly to CEO Satya Nadella. Microsoft’s new gaming cloud division is headed up by Kareem Choudhry, a 20-year Microsoft veteran that has worked on Outlook, DirectX, and Xbox engineering.

Microsoft is hoping to entice more game developers and publishers to use its cloud, and the new division aims to make that happen. Games are becoming more connected due to multiplayer and cross-platform experiences, and that’s only expected to increase as things move along.

“We believe there is going to be 2 billion gamers in the world, and our goal is to reach every one of them,” Choudry explained.

Microsoft Corporation shares rose $0.25 (+0.27%) in premarket trading Friday. Year-to-date, MSFT has gained 10.91%, versus a 2.89% rise in the benchmark S&P 500 index during the same period.

MSFT currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 65 stocks in the Software – Application category.