SALT LAKE CITY — Well, Amazon is in line to take over the video game industry.
What’s going on: Amazon is looking to launch a video game streaming service through the internet, joining Microsoft, Google and other companies that have similar projects in the works, The Information reported.
- The introduction of a popular video game streaming service would eliminate the need for physical game copies — and for consoles in general.
- The idea would be to allow people to stream video games on their smartphones, tablets and smart televisions, among other consoles and devices, according to The Information.
- Amazon would sell customers a subscription plan at a flat rate to play an unlimited amount of games. This would hurt business for most video game publishers, which sell their games for $50 to $60 a pop.
- It’d be unlikely for gamers to buy games individually and pay for a subscription service, one industry executive told The Information.
- “There are a lot of business model issues to be worked out, such as what are consumers willing to pay for,” said David Cole, an analyst at DFC Intelligence, a game industry research firm, to The Information. “Many consumers are used to paying $60 for a game disc they install on their system. Getting them to also pay for a subscription service is a huge challenge. Why do you need a subscription service to play games that you can get other ways?”
Flashback: Last year, Amazon launched a cloud-based service that allows developers to add competitions and giveaways into video games, CNBC reported.1 comment on this story
- The service, called GameOn, gives developers the tools to add features to games, such as leagues, tournaments and rankings.
Changing times: Amazon’s decision to enter the video game space comes as gamers are finding various ways to play new games.
- For example, many gamers hop onto a service called Steam, which is an online store where they can download free or cheap games created by independent game developers.
- Epic Games, the creators of “Fortnite,” recently announced it would create its own store for independent games, too.