Sony, Nintendo No Longer Gaming Rivals For Microsoft

Project xCloud

Interesting perspective. But not entirely unexpected when you have invested billions in the creation of your cloud service. Sony and Nintendo may be leaders in their respective gaming spaces, but Microsoft says that it has moved beyond.

And instead, now sees Amazon and Google as competitors.

These are the words of Xbox head Phil Spencer, who was talking about the state of gaming and how technology companies are perceiving it. He has made it clear that it is now focused on Google and Amazon as rivals.

“When you talk about Nintendo and Sony, we have a ton of respect for them, but we see Amazon and Google as the main competitors going forward. That’s not to disrespect Nintendo and Sony, but the traditional gaming companies are somewhat out of position. I guess they could try to re-create Azure, but we’ve invested tens of billions of dollars in cloud over the years.”

Sage speak, eh?

Cloud gaming is still in its earliest of stages right now, in a market where the three major console manufacturers — namely Microsoft, Sony, and Nintendo — have an awful lot of questions about how the market will evolve in the next couple of years.

Microsoft for its part is moving full steam ahead, pun always intended.

The company initially announced xCloud back in 2018, and the service finally entered limited preview last year. Google has one upped the Redmond giant with its Stadia launch. And just this week, NVIDIA has launched its GeForce Now service, shedding its beta tag.

NVIDIA and Google are already fighting for a piece of this market, and Amazon is expected to do the same shortly.

Microsoft has an advantage in how it has been building its cloud infrastructure and services over the past few years. Azure and Game Stack are platforms that other companies can also utilize for their own gaming solutions.

The ultimate goal for Microsoft would be to not just find gaming success itself, but also convince other companies like Sony and Nintendo to choose its cloud services down the road.

With this in mind, what Phil Spencer is alluding to makes the world of sense.

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