Microsoft Inks Deal With Boosteroid Cloud Gaming Service

Recently, Boosteroid and Microsoft MSFT announced a 10-year partnership to deliver Xbox titles to the latter’s cloud gaming platform. As part of the agreement, Microsoft will permit the cloud provider to stream Call of Duty and other Activision Blizzard ATVI titles.

Boosteroid Tweeted on Twitter:

Boosteroid boasts 4 million users worldwide and is accessible in the U.S., Ukraine, the United Kingdom, and the entire European Union. It provides cloud gaming services through the browser and dedicated apps for platforms like Windows, Linux, Android, Android TV, and Macintosh.

Additionally, it has stated that it intends to make additional cloud gaming services available through LG TVs, Macs, Chromebooks, and Android set-top boxes. Although Boosteroid withholds information about the physical components of its servers, it guarantees a 1080p resolution at 60 frames per second.

The monthly or annual cost of the service is €9.89 ($10.61 and $96.57 at the current currency rate). It should be emphasized that the agreement between Microsoft and Boosteroid is conditional and will only take effect after the closing of Microsoft’s acquisition of Activision Blizzard.

Microsoft Gaming Revenues Declined

Microsoft Gaming’s revenues fell 13% and 9% at cc in the second quarter of fiscal 2023. Xbox hardware sales fell by 13% (9% at cc). Revenues from Xbox content and services fell by 12% (down 8% at cc) due to a fall in first-party content.

Microsoft promised last week that, even if the merger is successful, the Xbox Game Pass membership service cost will not go up because, according to Microsoft officials, doing so would be counterproductive.

Microsoft added that by maintaining the Game Pass costs at their current levels, Call of Duty players are more likely to remain subscribers over time instead of signing up for Game Pass only when a new game in the franchise is launched.

Microsoft has partnered with other gaming platforms three times to persuade British and European regulators to accept its $68.7 billion acquisition offer for Activision Blizzard. By April 11, 2023, European regulators will decide whether to approve or disapprove the transaction.

Microsoft recently inked similar contracts with Nintendo, Nvidia, and Steam as it faces fierce competition from Sony SONY, the maker of the competing PlayStation platform, and is concerned about losing access to Call of Duty and other popular titles from Activision.

Similar to Nvidia, Boosteroid allows users to stream games they already own. Microsoft estimates that extra gamers for notable titles like Call of Duty will exceed 150 million when combined with other partnerships with Nvidia and Nintendo.

The collaborations will also enable the playability of games created by Bethesda, Activision Blizzard, and Xbox Game Studios across various cloud gaming services.

Microsoft reportedly presented Sony with a 10-year, legally binding contract to guarantee full feature and content parity for every new Call of Duty game released on Xbox and PlayStation. Zacks presently has MSFT ranked third (Hold).

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The complete list of today’s Zacks #1 Rank (Strong Buy) stocks is available here. Microsoft acknowledged that it had also given Sony a choice to make future Call of Duty games available on day one through its PlayStation Plus subscription service.

However, its rival claimed the offer might be contingent on unaffordable licensing costs, forcing Sony to increase prices. The business added that it is prepared to pay a third-party organization to monitor its adherence to any agreed behavioral solutions.

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