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Microsoft to develop a streami...Microsoft at E3 last month revealed that it was developing a gaming console that would stream games directly from the cloud. The new system would be called Scarlett Cloud and it is a part of Microsoft’s next-generation Xbox strategy. What’s more is that this gaming console would be cheaper than the traditional consoles where games have to be installed individually.
Microsoft plans to release the next Xbox in two types. One is the traditional Xbox, while the other is the lower powered streaming-only console. Gaming aficionados might have every reason to celebrate given the fact that the video game streaming system will be cheaper than its conventional counterpart. Several observers agree that it is indeed a sound strategy because of Microsoft’s existing cloud infrastructure. Microsoft’s profit margins from the sale of Xbox consoles have been small and so, it has relied on sales of games and other online services to make up for the revenues.
Sony, Microsoft’s arch-rival in the gaming sphere, also offers a comprehensive library of video games for users to stream through its PlayStation Now service and covers games for all of its consoles, namely, PS2, PS3, and PS4. Nvidia has also entered the game streaming market with a very limited number of games through its GeForce Now service. But none of these competitors have the global cloud infrastructure that Microsoft has. If this idea of Microsoft becomes a hit, then it could signal a paradigm shift for the gaming industry.