Xbox vs PlayStation: Microsoft takes console war to the cloud by buying Call of Duty makers Activision Blizzard

US antitrust officials are seeking to block Microsoft’s acquisition of Activision Blizzard, as the computer software giant sets its sights on cloud gaming

Its Game Pass subscription service is already way ahead of rivals Sony, Google and Amazon, who are concerned Microsoft will have a monopoly on popular titles

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Microsoft’s acquisition of Activision Blizzard, maker of video games including Call of Duty (above), has competitors Sony, Google and Amazon worried it will monopolise gaming content in the cloud. Photo: Activision

Published: 7:45pm, 13 Dec 2022

Microsoft’s US$69 billion acquisition of Activision Blizzard has focused attention on the decades-old paradigm of console-exclusive games played on its Xbox and chief rival, the Sony PlayStation, but antitrust officials seeking to block the deal are potentially more concerned about the future of gaming in the cloud.

Cloud gaming is still in its infancy. Most video games, from Activision’s Call of Duty to Elden Ring, developed by FromSoftware, are bought individually for about US$70 each and downloaded to a console or computer.

But Microsoft, one of the leading cloud computing service providers, is seeking to change that.

It has focused on building up a subscription service, Xbox Game Pass, which offers a library of more than 300 titles for about US$10 a month for gamers to download to play on Xbox or PC. A higher-tier subscription, US$15 a month, includes cloud gaming, which enables subscribers to stream certain games onto any device, including tablets and phones.

Microsoft’s Xbox Game Pass is the leading console subscription service. Photo: Xbox

While cloud gaming technology and the content available are still limited, some analysts and executives think it could eventually make consoles less relevant. And Microsoft is in pole position with the infrastructure and content to increase its share.