Microsoft's Xbox Could Transform From a Console to a Service

Microsoft's (NASDAQ: MSFT) Xbox chief Phil Spencer recently hinted that streaming sticks could replace full-featured gaming consoles in the near future. Speaking to The Verge, Spencer claimed streaming sticks could potentially tether more gamers to its xCloud gaming service.

Spencer also hinted that a device could be "included in the Game Pass subscription" and allow gamers to "stream xCloud games" on their TVs. That strategy wouldn't be surprising, since Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google already bundles its cloud gaming service Stadia with its Chromecast Ultra streaming dongle.

But it would be a bold move for Microsoft since streaming sticks could cannibalize sales of its Xbox consoles. Let's see how the Xbox could transform from a console to a service, and what that would mean for the future of Microsoft's gaming business.

Source Fool.com