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It was revealed to E3 last month that Microsoft was building a cloud gaming system. A report today calls this Scarlett Cloud system and this is only part of Microsoft's next-gen Xbox policy. And that also makes a lot of sense.
According to Thurrott.com, noticed site for everything concerning Microsoft, the next Xbox will be available in two versions. One, will be a traditional game console where the games are processed locally. You know, how it works on gaming systems right now. The other system will be a less powerful system that will broadcast games from the cloud – probably the Microsoft Azure cloud.
This streaming system will still have some processing power, which is partly to counter the latency traditionally badociated with streaming games. Apparently part of the game will run locally while the rest will be sent to the system.
The Xbox streaming will probably be available at a much lower cost than the traditional Xbox. And why not. Microsoft has sold Xbox systems with a low profit margin, relying on sales of games and online services to make up the difference. A streaming service Thurrott is talking about would benefit more from this model while taking advantage of Microsoft's deep understanding of cloud computing.
Some companies have tried to broadcast complete video games. Onlive was one of the first and had a blazing success for some time, before suffering a major sale of 4.8 million dollars in 2012. Sony offers an extensive library of PS2, PS3 and PS4 games for PlayStation Now broadcast a service. Nvidia has entered the streaming game this year and offers a small selection of streaming via GeForce Now.
Sony and Nintendo do not have Microsoft's global cloud computing platform, and if Microsoft's streaming service hits, it could change the landscape and force competitors to reevaluate everything.
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