Microsoft Doesn't Even Need Activision to Win at Cloud Gaming

The way we play video games has changed a lot over the years. From the arcade cabinets containing Space Invaders and Pac-Man, to the home console era of the ‘90s and aughts, to the internet age where you can play against anyone in the world — and download high-end games in a matter of minutes. Each phase has reshaped the industry, and its balance of power, massively.

The next stage, according to the smart money, is in cloud gaming. Building up a catalogue of premium games that can mostly be played instantly, like a Netflix Inc. show, is tipped to be the definitive way the vast majority of gamers will access top titles in the future. Subscription plans will likely form the bedrock of this model, rather than the purchase of individual games.