Facebook Makes a Big Bet on Cloud Gaming

Facebook (NASDAQ: FB) recently acquired PlayGiga, a Spanish cloud gaming company that provides services in Italy, Argentina, Chile, and Spain. The tech giant didn't disclose the size of the deal, but an earlier report at Cinco Dias pegged the value at 70 million euros ($78 million).

This acquisition complements Facebook's other gaming efforts and indicates that it will chase Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Microsoft (NASDAQ: MSFT), Sony (NYSE: SNE), NVIDIA (NASDAQ: NVDA), and others into the nascent cloud gaming market. But will this expansion pay off?

Three years ago Facebook introduced its "Instant Games" platform, which enabled users to launch lightweight games from the News Feed and Messenger. Last December, Facebook claimed that over 20 billion game sessions had been played across 5,000 titles, which formed the foundation of a gaming ecosystem within its own apps.

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Source Fool.com