This probably comes as no surprise, since Microsoft’s been the 800-pound gorilla of tech for so long that it was probably poised to buy half the tech companies you’ve ever heard of while already owning the other half, but OnLive was apparently on Microsoft’s radar around 2010.
Microsoft’s Strategic Concerns
Microsoft’s major and not entirely unjustifiable fear, as revealed by the same leak that brought us the Xbox 720 news earlier today, was that OnLive could “up-end the console gaming market by making expensive consoles and PCs unnecessary for AAA gaming.” This concern was rooted in the potential of cloud gaming technology to revolutionize the gaming industry. OnLive’s technology allowed users to stream high-quality games directly to their devices without the need for powerful hardware. This could have significantly reduced the demand for traditional gaming consoles and high-end gaming PCs, which were Microsoft’s bread and butter with their Xbox series and Windows operating systems.
The same document also contains “threat” assessments for the Wii 2, PS4, Apple and, strangely enough, Google TV. Each of these entities represented a different kind of competition in the rapidly evolving tech landscape. For instance, the Wii 2 (later known as the Wii U) and PS4 were direct competitors in the console market, while Apple was making strides with its iOS platform, which was becoming increasingly popular for casual gaming. Google TV, on the other hand, represented a potential shift in how consumers accessed media and entertainment, which could indirectly affect the gaming market.
The Rise and Fall of OnLive
OnLive was a pioneer in the field of cloud gaming. Launched in 2009, it promised to deliver high-end gaming experiences without the need for expensive hardware. Users could play games on a variety of devices, including low-end PCs, Macs, and even tablets, by streaming the game from OnLive’s servers. This was a groundbreaking concept at the time and attracted significant attention from both consumers and industry giants like Microsoft.
However, despite its innovative technology, OnLive faced numerous challenges. The company struggled with financial issues and competition from other emerging cloud gaming services. Additionally, the infrastructure required to deliver a seamless gaming experience was still in its infancy, leading to issues with latency and reliability. These factors ultimately led to OnLive’s decline, and the company was eventually acquired by Sony in 2015, who integrated its technology into their PlayStation Now service.
Microsoft’s interest in OnLive highlights the company’s proactive approach to potential threats and opportunities in the tech industry. By considering an acquisition, Microsoft was looking to either neutralize a potential competitor or integrate OnLive’s technology into its own ecosystem, potentially enhancing its Xbox and Windows platforms.
Source Ars Technica
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