Attention Gamers! Assassin's Creed Maker Envisions Netflix-Style Revolution in Gaming Post Microsoft Deal

UbiSoft Entertainment Inc UBSFY, the video game company behind popular franchises like Assassin's Creed and Tom Clancy's Rainbow Six, is poised to reshape the gaming landscape through streaming, akin to how Netflix Inc NFLX transformed the television and film sectors. 

This assertion comes from Ubisoft's pivotal cloud-gaming agreement with tech giant Microsoft Inc MSFT.

Also Read: Sony to Leverage AI in its Quest for Cloud Gaming, but CEO Kenichiro Yoshida Expresses Concerns

Reflecting on the early skepticism surrounding Netflix's foray into streaming, Ubisoft's CEO, Yves Guillemot, highlighted the streaming service's subsequent meteoric rise, drawing parallels with the gaming industry's potential trajectory. 

"It's going to be the same with video games, but it will take time. But when it takes off, it will happen very quickly," Financial Times cites Guillemot.

Despite its potential, cloud gaming's ascent has been more gradual than anticipated, facing technological and business-related hurdles. 

Notably, Alphabet Inc GOOG GOOGL Google had to dump its ambitious Stadia cloud gaming service after failing to garner a substantial user base. 

Research group Omdia projects that cloud gaming services, including Xbox Game Pass Ultimate and PlayStation Plus Premium, will generate a revenue of $3.2 billion in 2023, accounting for a mere 2% of the total consumer expenditure on games. 

This figure will likely double in the subsequent five years.

Guillemot strongly believes that in the next five to 10 years, many games will be streamed and produced in the cloud, emphasizing the motivation behind the Microsoft partnership. 

Ubisoft aims to leverage streaming rights to boost its presence in regions outside Europe and the U.S., where traditional console gaming hasn't gained a strong foothold. 

Guillemot believes that rapid technological adoption in these regions will lead to a swifter transition to cloud gaming.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.