Microsoft Corporation (MSFT) Is Working On A Netflix For Gaming

Microsoft Corporation (NASDAQ:MSFT) envisions a future where video games exist only in the cloud, and are streamed directly to gamers anywhere in the world, no matter what device they’re on.

If that sounds a lot like a Netflix for gaming, you’re right. As The Verge reports, that’s exactly what the Redmond, WA-based gaming giant is working on, with its gaming cloud division head Kareem Choudhry, leading the way:

A “Netflix for video games” would be an important service for any company with cloud gaming aspirations, but it’s going to be a difficult task for Microsoft on rival platforms like the PlayStation 4 or Nintendo’s Switch. Despite the challenge, Choudhry hints that Microsoft could achieve this by streaming games to devices. “We’re looking at ways to make that content available to anyone no matter what device they’re on,” says Choudhry.

Other companies have tried streaming gaming services in the past, with little success. Technological limitations have plagued those attempts, but the confluence of powerful cloud-based hardware and ultra fast internet speeds may soon combine to make the experience not just tolerable, but enjoyable for even the most demanding gamers.

And that would likely mean a massive new revenue opportunity for Microsoft and its entire gaming division.

Microsoft Corporation shares closed at $94.60 on Friday, up $0.42 (+0.45%). Year-to-date, MSFT has gained 11.11%, versus a 2.75% 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.