Microsoft calls cloud gaming an “immature technology”. Tell GeForce NOW about it.

There have been many moves in the cloud gaming space in recent months, including the shutdown of Google Stadia. This has led Microsoft to call cloud gaming a “new and immature technology” in a recent filing refuting claims by the UK’s Competition and Market Authority (CMA). Purchase Activision-Blizzard.

Earlier in October, we covered the CMA’s Phase 1 investigation into Microsoft’s acquisition of the Activision Blizzard merger. That investigation raised concerns that Microsoft might make popular games like Call of Duty exclusive to the Xbox. In addition to this, however, there were also concerns that the acquisition would help Microsoft wipe out competition in the cloud gaming market.

This latter point was touched on again in Phase 2 investigations and filings. Microsoft has refuted his CMA “theory” that Microsoft has an advantage over its cloud competitors and will be boosted by the deal. The CMA believes Microsoft’s “multi-product ecosystem” consisting of “major cloud platforms and PC operating systems” could lead to competitive troubles in the marketplace, the response outlines. I’m here. However, Microsoft explains that Xbox Cloud Gaming may be at a disadvantage because it doesn’t use Azure technology or stream games from PC hardware.

Additionally, Microsoft argues that “consumer adoption of cloud gaming remains low” and that aggressive competition from other cloud competitors will set back adoption of the technology. The company also claims that cloud gaming is a “new and immature technology” and that consumers are choosing to download games and play them locally. However, this last point seems a little disingenuous. Companies like Google’s Stadia have risen and fallen in the short time since the advent of cloud gaming. Additionally, it looks like companies like Netflix are looking to jump into the game while NVIDIA stays strong with his GeForce Now. We’ve also seen rumors of expanded access to Microsoft’s cloud via a dongle codenamed “Keystone,” but what happens there remains to be seen.

Perhaps “new and immature” isn’t the right wording, but “robust but fast-growing” would have been more accurate for what we’ve seen, given that the technology is solid, not the business model. I guess. In any case, Microsoft’s initial response to the CMA’s Phase 2 investigation is interesting and worth a read if you get the chance. It certainly gives us some unique insight into how Microsoft thinks about the cloud gaming space, so let us know what you think about this in the comments below.