over 3 years ago • 2 mins
Amazon wants to play a game, and Google isn’t going to like it: the tech giant announced its foray into the video game streaming industry late last week 👾
Amazon unveiled Luna, a service that’ll let gamers play famous titles without the need for a console or physical games. The company has claimed it doesn’t want to replace consoles, mind you, and argues that streamed games will attract a different audience altogether. It’s also said Luna will cost $5.99 a month at first, which undercuts Google’s rival streaming games service, Stadia.
Stadia – which could help Google grow YouTube into a massive gaming and esports hub – should give the company’s online advertising a boost 📈 But Amazon’s new venture could lead to synergies of its own: the tech conglomerate might combine Luna with existing video streaming service Twitch – where over 800 million hours of content is viewed every month – to create yet another giant subscription and advertising business.
Between Amazon, Apple, Google, and, of course, Netflix’s various movie and music streaming services, Big Tech is fighting for every dollar available – and now that fight has come to video games 🥊 Besides Google, Amazon also has stiff competition in Microsoft, whose Xbox segment is still growing at the rate of knots. But who cares about them? You’re the real winner from competition like this, with lower prices and even more choice. Just look at Apple’s recently announced subscription bundles…
The $150 billion video games market – which is changing almost as fast as it’s growing – is increasingly moving away from one-time purchases and toward subscription and freemium options. Fortnite – a pioneer of the latter – made $2 billion last year, mostly from in-game purchases. But with lockdowns looming and a new PlayStation and Xbox coming soon, there could be life in the old console business yet.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.