As society increasingly expects all its media to be streamable at the tap of a button, videogames have been the exception to the rule.
While all the major videogame-hardware makers have digital stores on their consoles, from which users can buy and download or stream games with ease, the console of choice is still required, whether it be Microsoft's (MSFT) Xbox, Sony's (SNE) PlayStation 5, or Nintendo's (NTDOF) Switch.
Retailers have also continued to sell physical copies of many games, as some people like having a physical collection. So it's typical to wander into a Gamestop (GME) and see disk copies of big-hit franchises like "Halo" and "Call of Duty" on the shelves.
In the meantime, Microsoft has been busy at work on its Xbox Cloud Gaming infrastructure. It currently enables people to play the massively popular multiplayer survival game "Fortnite" for free, as well as offering a full game library to those who use its subscription-based Xbox Game Pass service, which functions like a Netflix (NFLX) for videogames.
Microsoft's moves in the subscription and cloud spaces have certainly upped the ante for competitors Sony and Nintendo. Sony recently announced its own updated structure for PlayStation Plus, its own membership service, but historically it has not offered brand new games for its users, while Game Pass does.
But now Microsoft has made a new announcement that its cloud gaming service is coming to a brand-new platform -- and you don't need a videogame console to access it.
Microsoft
What is Microsoft's New Cloud Gaming Service?
Microsoft on June 9 said that its cloud gaming service will now be available for all 2022 Samsung (SSNLF) Smart TVs.
This means that owners of these TVs can access Microsoft's full Game Pass library and play it without owning an Xbox console.
This service will be available starting on June 30 and can be accessed via the Xbox app, which can be downloaded on Samsung Smart TVs via its app store.
Microsoft for some time has been on a mission to push its games to other platforms. Before this announcement, users of its Game Pass service could already stream games to Apple (AAPL) and Android (GOOGL) phones and tablets and Windows PCs in addition to Xbox consoles.
But this new move is a glimpse into a future where videogame consoles no longer have a reason to exist at all.
Are Videogame Consoles Going Away?
Microsoft says it's "building the gaming platform for the next 20 years" with this move, which aligns its business model to more closely resemble that of Netflix and other streamingmedia services.
It makes sense since the sales of physical gaming items (both consoles and games) have been on a consistent decline for years, with more people than ever flocking to digital-only options.
Naturally this drop in revenue provides a roadmap for videogame publishers as they look to cater to the needs of the consumer.
But for more than 50 years consoles have also been one of the primary measuring sticks for success in the videogame industry. Many have sold millions of units and triggered a heated battle among companies known as the "console wars." So a change to a console-free model would be a massive change for the industry.
But it's a change that seems inevitable, and now that Microsoft is pushing its strategy forward, Nintendo and Sony may be considering whether to follow suit.
