Facebook tests cloud gaming waters with $78 million acquisition of Madrid-based company PlayGiga
- Facebook made its first-ever cloud gaming acquisition by purchasing PlayGiga
- It’s unclear what Facebook’s plans are and if it will launch its own service
- PlayGiga hosts 300 games for customers in Argentina, Chile and Spain
Facebook will make its first foray into the world of cloud gaming after purchasing Madrid-based upstart PlayGiga.
As reported by CNBC, Facebook confirmed its $78 million acquisition of PlayGiga, a European cloud gaming company that serves customers in Italy, Argentina, Chile, and Spain, and has plans to expand to Sweden, Austria, the Netherlands and Guatemala.
The service already boasts a fairly formidable list of 300 titles and does not offer direct-to-consumer services for individuals, but in its own words, allows ‘telcos, publishers and media companies to add gaming as a service to their digital service portfolio.’
‘We’re thrilled to welcome @PlayGigaOficial to the Facebook Gaming team,’ tweeted Facebook from its gaming account. ‘We’ll decline further c☁️mment for now.’
What’s unclear is what exactly Facebook plans to do with its newest cloud gaming arm.
It’s possible that it may retain PlayGiga and continue to grow the business across the European market, but it’s also possible Facebook could use the company to launch its own company-branded service.
If the latter is true, Facebook will enter an increasingly competitive field for cloud-based gaming that includes some of the biggest names in tech.
In addition to Google’s recently launched Stadia service, both Microsoft and Sony – two of the biggest names in more traditional console gaming – are also gearing up to release their own cloud-gaming services.
In a surprise twist, Microsoft and Sony also partnered together in May to help develop cloud-gaming technology and compete with the likes of Google and Amazon.
Microsoft’s xCloud is currently in beta phase where early users can play 50 games in total.
Facebook would have plenty of competition on the cloud gaming space, including Google, Amazon, Microsoft and Sony
Additionally, Amazon will reportedly throw its hat into the cloud gaming ring by 2020 in a bid to challenge competitors like Google.
While Amazon hasn’t formally announced its intentions, CNET recently corroborated rumors, providing evidence of the initiative via job listings for a ‘new initiative’ within Amazon’s cloud computing branch.
CNET reports that Amazon also eventually plans to integrate its new service with Twitch, the Amazon-owned platform through which gamers are able to stream themselves playing their respective games.