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Amazon, Microsoft introduce new strategies to grow cloud gaming

Amazon and Microsoft are introducing new ways to bring cloud gaming to a wider audience.

Microsoft’s Xbox division said Thursday that it plans to test an ad-supported option that would allow users to stream video games.

Amazon, meanwhile, announced plans to integrate its Luna cloud gaming service into Prime Video, which is included with Prime subscriptions that cost $14.99 per month.

The move will give Luna more prominent exposure across Amazon’s platform, as the service was previously accessible only through a dedicated website.

The two companies have found success in cloud computing but have struggled to persuade consumers to embrace cloud gaming, where unreliable internet connections can lead to latency and disrupt the gaming experience.

“Our goal is simple. Give more people more affordable ways to play,” Xbox wrote in a blog post.

Microsoft launched its first Xbox console in 2001. Today, the Xbox business trails Nintendo and Sony in console sales and is seeking to reignite growth and expand margins after Microsoft acquired Call of Duty publisher Activision Blizzard for $75.4 billion in 2023.