Game console will be micro, video game to the cloud?


The video game console may gradually disappear and may turn to the cloud in the future. Foreign Capital pointed out that Microsoft’s business scope originally included video games and cloud services, which would benefit from this, and the market value of the company is expected to increase by US$100 billion.

Barron’s reported on the 15th that Evercore ISI analyst Kirk Materne reported that in the past, video game entities sold CDs for one-time consumption. Nowadays, video is becoming digital, more and more games have been downloaded from the cloud, and players can also purchase microtransactions and spend money to purchase maps, equipment, or additional game content.

The report pointed out that in the future, video games may go to game streaming, meaning that instead of buying a host or a high-performance computer, the game can be played through the public cloud. Microsoft’s Xbox game console, familiar with the video game market operation, and the public cloud Azure, have a good position to attack these opportunities.

In the long run, game streaming is an opportunity for Microsoft Azure to start a new game. Although the purchase of physical hosts is reduced, the game stream can increase the number of players. Those who would not have spent money to purchase the console will also join the video game market. Materne believes that Microsoft’s market value is expected to increase by US$100 billion. He gives Microsoft a “outperform” rating with a target price of US$118.

On the 15th, Microsoft fell 0.72% to close at 97.32 US dollars; compared with 118 US dollars, there is still about 20% upside. Microsoft has soared 13.77% so far this year.

source: MoneyDJ

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