Amazon has entered the streaming video game service market with the launch of Luna, putting it in direct competition with Microsoft and Google. Luna allows gamers in the US to request early access and uses a video game controller to connect to games in Amazon Web Services datacenters. The service can be streamed through Fire TV and personal computers, with mobile app support coming soon. Luna is priced at an introductory price of $6 per month.
Wedbush analyst Michael Pachter praised Amazon’s streaming service but noted the tough business model it faces. Luna will be competing against Microsoft’s xCloud and Google’s Stadia in the cloud gaming sector. Google’s Stadia membership costs $10 per month, while Microsoft recently made xCloud gaming free for now.
Amazon also announced a gaming channel on Luna dedicated to Ubisoft, allowing subscribers to access popular titles like Assassin’s Creed Valhalla and Far Cry 6. Amazon plans to add more channels in the future, providing access to games from a variety of publishers. Ubisoft’s senior vice president of partnerships, Chris Early, expressed excitement about the partnership with Amazon and the ability to reach players through cloud gaming.
Streaming of gameplay on Amazon’s Twitch platform will also be available on Luna. This move comes at a time when watching video games as a spectator sport is gaining popularity, especially during the pandemic. Luna is built on Amazon’s powerful AWS infrastructure, leveraging its position as a market leader in cloud computing.
The launch of Luna aligns with Amazon’s existing offerings in the gaming industry, including video game sales on its e-commerce platform and its Twitch community. By entering the subscription model space, Amazon aims to capture a portion of the gaming market, as it has done with movies and music. The restricted preview period for Luna will allow Amazon to refine the service and address issues such as graphics latency before its full release.
While Amazon may be new to the gaming industry, Luna provides an opportunity for the company to engage with gamers and potentially generate revenue through ads and in-game transactions. By attracting and retaining an audience of gamers, Amazon can leverage its retail services associated with gaming products.
Overall, Luna’s launch showcases Amazon’s ambition to compete in the streaming video game market and capture a share of the growing industry. With its existing infrastructure and partnerships with publishers like Ubisoft, Amazon has the potential to disrupt the competitive landscape. As Luna evolves and improves, it will be interesting to see how it fares against its rivals.
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