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Google Opens a New Battlefront with Amazon and Microsoft

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Google Stadia eliminates the need to download games

Amazon (AMZN) and Microsoft (MSFT), along with other video game publishers, are in for some competition as Google (GOOGL) prepares to launch its own video game platform. Google has built a video game platform, Stadia, which will launch in the coming months.

Stadia is designed to make life easier for gamers, as it eliminates the need to download games. Instead, the platform allows people to play games directly from their browsers on a range of devices, from desktops to smartphones.

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Amazon operates a video game streaming platform that hosts millions of users across publishers and viewers. Microsoft also runs a gaming unit, which is one of the world’s largest video game businesses.

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A $174 billion market

According to estimates from Newzoo, Microsoft generated $6.2 billion in revenue through its gaming unit in the first nine months of 2018, making it the world’s fourth-largest public video game company by revenue. Tencent (TCEHY), Sony (SNE), and Apple topped with $15.1 billion, $9.9 billion, and $6.9 billion in video game revenues, respectively, in the first nine months of 2018.

With Stadia, Google is taking the battle to the doorsteps of Amazon, Microsoft, and all major video game companies in a bid to dominate the multibillion-dollar video game industry. According to Newzoo, the global video game market generated $134.9 billion in revenue in 2018, and it’s on track to reach $174 billion by 2021. Google is already battling Amazon and Microsoft in the cloud computing market, and the launch of Stadia opens another battlefront for Google with these rivals.

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