On February 28, Microsoft Corp (NASDAQ:MSFT) expanded the Game Pass subscription service to dozens of new markets, including in Latin America, the Middle East, and Eastern Europe, almost doubling the number of countries where it’s available to 86, Bloomberg reports.
As gaming expands beyond bulky devices that people plug into their television sets, Microsoft evolved to keep pace with gamers.
A key to Microsoft’s strategy is Game Pass, a six-year-old service that charges users $10 to $15 a month to play a collection of more than 400 games on the Xbox, Microsoft’s Windows PC operating system, smart TVs, smartphones, and tablets.
As of January, the number of users who accessed the service on three or more devices had grown 20% year-on-year.
Microsoft sees its Netflix Inc (NASDAQ:NFLX) approach to gaming, running on a wide range of devices, as the future of video games.
Microsoft’s success with Game Pass outshined its significant competitors, including Amazon.com Inc’s (NASDAQ:AMZN) Luna, Alphabet Inc’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and Sony Group Corp (NYSE:SONY).
Microsoft has clear advantages over its competitors in content and infrastructure courtesy its two dozen game studios, built-in delivery systems on the Windows operating system and Xbox console, and most extensive cloud computing networks in Azure.
Microsoft does not make the terms of its Game Pass licenses public. Still, developers say they often receive upfront payments to include their titles in the catalog and bonuses for games that do well on the service.
However, Microsoft’s proposed deal with gaming firm Activision Blizzard, Inc (NASDAQ:ATVI) faced opposition over antitrust concerns.
Regulators in the U.S., Europe, and the U.K. opposed Microsoft’s Activision deal that allegedly cemented its preeminent position in a nascent market.
Recently Microsoft cut decade-long deals with Nvidia Corp (NASDAQ: NVDA) and Nintendo Co, Ltd (OTC: NTDOF) (OTC: NTDOY) to win over opposition against its Activision deal.
Price Action: MSFT shares traded higher by 0.14% at $250.50 premarket on the last check Tuesday.
